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· Iowa State University Ag Economist Says Chinese Demand For U.S. Corn Is Surging
· Derecho blows away expectations of a record-setting U.S. corn crop
Iowa State University Ag Economist Says Chinese Demand For U.S. Corn Is Surging
Radio 570 WNAX (SD)
Sep 14, 2020
China is working to rebuild their grain stocks following the effects of the pandemic. Dr. Dermot Hayes, Ag Economics Professor at Iowa State University says because of that China’s demand for U.S. corn is surging and the U.S. is ready to supply that.
He says China is willing to buy U.S. corn because it’s very inexpensive compared to that produced in their own country.
Hayes says the recent derecho won’t keep the U.S. from supplying China’s needs for corn because the carryover stocks are so large. He also says they remain our major customer since other nations are curtailing their purchases because of the slow down in the world economy.
The most recent data says China will now import...
more, including audio [1:15 min.]
Derecho blows away expectations of a record-setting U.S. corn crop
By Chuck Abbott, Successful Farming
Agriculture.com - 9/14/2020
The windstorm that blasted across Iowa — “basically a 40 mile-wide tornado,” in the words of Gov. Kim Reynolds — wiped out 9% of the crop in the nation’s No. 1 corn state and obliterated the chances for a record-large corn harvest nationwide, said the USDA. Farmers will see notably higher season-average prices for the smaller, but still ample, crop that remains in the field.
Now forecast at 14.9 billion bushels, the corn crop would be the second-largest on record and would be worth $4.75 billion more at the farm gate, selling for an average $3.50 a bushel, than the record-large crop forecast a month ago that was expected to fetch $3.10 a bushel, according to USDA data. The smaller crop would prevent a burdensome expansion of corn supplies although the U.S. inventory would increase somewhat.
By itself, the Aug. 10 derecho in Iowa caused enough damage to prevent a corn production record this year. The USDA lowered its estimate of the Iowa crop by 9 percent, to 2.483 billion bushels, in the monthly Crop Production report, and said 550,000 acres were lost in the storm, which packed winds exceeding 100 mph. “Many producers indicated they were still finalizing decisions regarding some of the impacted areas,” said the USDA, so it will check in October to see if losses have expanded.
Hot and dry weather in the western Corn Belt also lowered prospects for the crop, but Iowa accounted for 254 million bushels of the 378 million-bushel reduction by USDA in the corn forecast. The record U.S. corn crop was 15.148 billion bushels in 2016.
Despite the mark-down of the U.S. crop, world corn production is forecast at a record in 2020/21 of 1.162 billion tonnes, said USDA in its WASDE report. Brazil, second to the United States as a corn exporter, was forecast to grow its largest crop ever, 110 million tonnes, allowing it to expand sales to 39 million tonnes, a 5 million-tonne increase from 2019/20. By comparison, U.S. corn exports are forecast at 59 million tonnes in 2020/21, up more than 14 million tonnes from 2019’s weather-shortened crop, said the companion World Agricultural Production report.
The USDA also lowered its forecast of the soybean harvest...