8-22 FB Corn Down

 US Grains Council Comments on Corn Production. In its monthly agricultural supply/demand update the U.S. Department of Agriculture recently again lowered the outlook for U.S. corn production, reflecting the continued deterioration of this year's crop due to the once-in-a-lifetime drought that affects most of the U.S. corn belt.

The latest USDA projection lowers U.S. corn production to 274 million metric tons (10.8 billion bushels), down almost 40 million tons (1.6 billion bushels) from last year, and the lowest since 2006.  Executive Director of the Idaho Grain Commission, Travis Jones, says that Midwest corn does not enjoy the advantage we have here in Idaho which is irrigation: “It is really the rest of the country that we are worried about that doesn’t have irrigation such as the Midwest which has got the worst crop in at least 6 years.”  With this large reduction in U.S. corn supplies, higher prices are expected to ration demand during the coming year.