USDA: Brazilian production boom causing export challenges for record U.S. corn crop
USDA experts say competition from Brazil is casting a shadow on this year’s U.S. record corn crop, lowering trade demand for exports as well as the prices.
In the most recent release of the U.S. Dept. of Agriculture’s (USDA) World Agricultural Supply and Demand Estimates (WASDE) Report, the forecast revealed a significant surge in corn production, promising a bumper harvest. However, a growing giant in the world of corn production threatens to put pressure on these domestic export numbers.
Corn fields across the United States have been flourishing, and the USDA’s Outlook Board forecasts a staggering 15.1 billion bushels of corn production. That’s a remarkable 10-percent increase compared to last season, which itself was the second-largest crop ever recorded.
Export numbers did receive a boost, climbing by 23 percent to just over two billion bushels. The global appetite for American corn remains strong.
USDA World Outlook Board Chairman Mark Jekanowski explains the concern for U.S. corn producers in tandem with the surge in production from Brazil.
“We’ve raised Brazil’s corn production forecast, and it now stands at an astonishing 137 million tons,” Jekanowski said. “This marks a record-breaking crop for Brazil, and their harvest is winding down, which means their surplus will be hitting the global market. This competition from Brazil could potentially impact our export prospects as our supplies come off the field.”
As the U.S. corn crop continues to thrive, the USDA projects that prices may see a decline, with estimates hovering around $490 per bushel. This represents a significant drop of roughly 25 percent from the previous season.