NCBA: Competitive Corn Markets In 2011
US - It is predicted that corn use for ethanol production will overtake corn used in feed, in the next few years, said Mike Murphy, Cattle-Fax, at the 2011 NCBA Convention and Trade Show. Charlotte Johnston, TheCattleSite Editor reports.
7 February 2011
1 minute read
"Stocks of corn are going to become even tighter, they are already the tightest we have seen in 40 years," said Mr Miller.
Cattle-Fax predict that ethanol production will use 40 per cent of US corn production in 2011-2012. Ethanol production is just shy of five billion bushels.
On top of this, it is predicted that demand for grain will exceed the supply - pushing the prices up even further.
He said that the US must produce a sizeable crop in 2011 to increase stocks.
2011 yields are currently predicted to be 10 per cent higher than 2010 levels. Mr Murphy said that corn was a much better net revenue generator than soybean, because of which Cattle-Fax is confident that an additional four million acres of corn will be planted in 2011.
However high corn prices, reduced supply and increased usuage for ethanol production is likely to result in a decline of corn usuage as feed.
Volatile corn prices, will influence cattle prices, Mr Murphy warned. He demonstrated that between 1980 and 2004, corn prices didn't move more than a couple of cents annually. Now, he said, prices can move 30 cents a day.
If summer pollination goes well, Mr Murphy expects corn prices to have a harvest low of $4.75-5 in October/ November 2011.
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