Doane: corn demand outstrips production by nearly 1 mil. bushels

Doane Agricultural Services posted the following item today on our content site:

8/8/2006 -- ST. LOUIS -- Demand for corn will exceed production this year by nearly one billion bushels, according to significant research just released by Doane Advisory Services, a multi-media provider of information and analysis to agriculture.

Doane economists also forecast that an increase in future demand for ethanol will result in a shift to corn from soybeans.

Doane's annual corn/soybean survey and forecast, now available at www.doane.com/forecast, concludes a corn crop of 10.8 billion bushels and soybean crop of 2.98 billion bushels this year.

"Our long-term forecast calls for corn-planted area to be 85 million acres by 2009, an increase of seven percent," says Marty Foreman, Doane's feedgrain economist.

"Corn yields are on par with trends due to improved technology and farming practices. This has helped counter the potential negative impacts of two relatively dry U.S. growing seasons," said Foreman. "Despite this, it's important to recognize that demand will exceed corn production this year by nearly one billion bushels. This reinforces Doane's forecast that increased corn production area will be needed to maintain a balanced global supply and demand outlook.

"With soybean supplies in a more balanced situation, we expect market signals and economics will favor corn production relative to soybeans to enable producers to make decisions that are aligned with market realities."

This information and other details on crop production and market trends are outlined in the just-released report from Doane Advisory Services. The research, now in its 23rd year, encompassed nearly 3,000 driving miles through seven Midwestern states by Doane economists, and the resulting report represents more than two-thirds of the U.S. planted acres of corn and soybeans.

SOURCE: Doane Advisory Services via Business Wire.

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