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Reduced Corn Production To Affect Trade

The U.S. Corn Stockpiles are expected to increase as per the predictions by the Department of Agriculture. But the government kept the present data as it is.  As per the figures, the corn yield would be up to 13.63 billion bushels during the season of 2015-16. The storage bins will save About 1.876 billion bushels of corn by August end. The predictions said that it would be around 1.851 billion. The government said that the stockpile would be 1.771 billion in August 2016, higher than 1.746 billion estimates earlier.
The production was as high as 14.216 billion bushels last year but data says that it is only third largest in U.S. history.  The Department of Agriculture further added that the total corn production is more than historical averages. The soybean crop, another important carbohydrate crop is not doing well. The government expects yield of 3.850 billion by the end of 2016.  The yield is 20 million bushels lower than expert’s prediction of 350 million. The United States will have 475 million bushels of soybean in the next season, less than projections.
This drop in agricultural output is going to affect trading balance of the country. The increasing domestic demand will force the government to import the corn and soybeans. The soybeans are main contributors to animal meals and cooking oil. The government has therefore implemented restrictions to its exports and making sure that the domestic demands are being properly met. The lesser output is global trend, according to the data by USDA which says world will produce only 195.2 million metric tons of corn in the next season.

 

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