Feedstock levels to exponentially rise in US for 2013
The US Department of Agriculture (USDA) believes its country’s farmers will grow the most corn since 1936 as growers look to take advantage of high prices driven by last year’s drought.
A forecast of 97.3 million acres of corn is set to be sown in 2013 to help boost dwindling supplies, while soyabean plantings have been placed at 77.1 million acres. Wheat crops will rise 1% to 56.4 million acres also.
Bigger harvest yields are viewed as a necessity in the US this year as the impact of a smaller availability forced some ethanol producers to limit production or even shut down operations completely. Demand from overseas markets put further pressure on the tight supplies of corn and soyabeans too.
‘We're looking forward to potentially record plantings, which should relieve some pressure on the livestock and dairy industry that has been under some stress,’ USDA secretary Tom Vilsack says. ‘A drop in commodity prices may reduce the profitability of corn and soybean growers, but if they get great yields and still get a decent price, they may be in pretty much the same spot that they were in when they had low yields and high prices. It's really about balance.’