Corn harvest reaches historic level

By Ben Holman

Nevada Daily Mail

At 11.6 billion bushels, the October corn production estimate is showing a harvest larger than any seen in recorded history. With local storage facilities already brimming over and holding grain on the ground and a record soybean crop of 3.1 billion bushels nationwide right on the corn harvest's heels, farmers are scrambling to make room to store their beans.

"Farmers are wondering where they're going to put their soybeans," said Wayne Prewitt, University of Missouri Extension. "They're moving out their corn to make room."

While farmers in other parts of Missouri might find it difficult to sell off their corn quickly enough to clear space for beans, Vernon County farmers don't have that problem. According to Prewitt, southwest Missouri is in a corn depression -- consuming more corn than is produced locally. "We're lucky 'cause we've got Murphy's -- they're good users."

Prewitt said that it takes between 10-10.5 billion bushels of corn to meet U.S. demand and, with this year's crop exceeding 16 bushels per acre above records, we've more than met that. Usually, a crop as successful as this means that prices hit bottom. While prices are anything but good right now, Prewitt is quick to point out that prices have been a lot worse. The price is largely being supported by a worldwide demand for U.S. corn as well as increased demand for ethanol. "There are places for the surplus corn to go," he said.

Due to changes in diet among Asian peoples, American farmers are finding a ready market for their products. China, which once exported corn, is now a major importer of the grain. Increased oil prices are also driving the demand for alternative fuels, such as ethanol. Prices are partially supported by the availability of such markets.

Prewitt said that the reports took the market by surprise because of the way the USDA does it's surveying. The typical way they calculate yields is by looking at states in the corn belt -- Nebraska, Iowa, Illinois, Indiana and Ohio.

"They know about what their yields will be," said Prewitt. "It's when the fringe states (Missouri, Pennsylvania, Michigan, etc.) have a good year, that's when we really see a lot of bushels on a national level ... and the fringe states are coming through with excellent yields."