August 22, 2008

Tour results: Big corn crop

Pro Farmer came out with the results of its annual crop tour today. According to Dow Jones, Pro Farmer estimated that the U.S. will produce 12.15 billion bushels of corn this year on an average yield of 153.3 bushels per acre.

The U.S. Department of Agriculture’s estimate this month predicted production at 12.29 billion bushels with a yield of 155 bushels per acre.

Concerns for the corn crop include a shortage of nitrogen, dryness in parts of the Corn Belt, late development and shallow roots.

Although Pro Farmer's estimate is marginally smaller than USDA's, it would still be the second-largest crop on record and quite a turnaround from May and June when the worst was expected. Nevertheless, traders seem to feel that USDA is overly optimistic in its estimate and believe a smaller crop is out there.

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