USDA Alters Corn Forecasts

Usually the March edition of the USDA's round of crop forecasts is pretty dull stuff,not much happening.  But this time, it's not so dull for U.S. corn growers.  First, it continues to be very hot and dry in Argentina, USDA has chopped three million tons off the projected corn crop there.  Also, USDA's Chief Economist Rob Johanson said world corn production will drop 33.5 million tons from last year, taking global season-ending corn down almost 33 million tons.

"Down to under 200-million metric tons for the first time in quite some time."

And, on the U.S. side, the USDA has increased its forecast for corn use in ethanol.

"We also saw a pretty significant bump in our exports, $175 million."

Partly based on this past week's reported bump-up in outstanding corn export sales, the highest for the last week in February for any year on record.  The USDA raising its forecast prices one nickel for the season-average price, up to $3.35.  They're in the $3.24 range currently, so that could mean prices from here on out will run about $3.50 a bushel.

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