USDA projecting jump in U.S. corn consumption
The USDA is projecting a billion more bushels of U.S. corn to be consumed next marketing year.
Todd Hubbs, a University of Illinois ag economist, says reaching the nearly 15-billion-bushel projection might come at a cost.
“Is it feasible? Yes, it’s feasible,” he said. “It may require lower corn prices than we like to hit that number.”
Hubbs tells Brownfield increased ethanol demand and lower corn prices driving trade will be the key factors in raising U.S. corn consumption.
USDA is projecting more than 2.2 billion bushels of corn to be exported next marketing year which is 230 million bushels more than this marketing year. Hubbs says that might be tough to do but not impossible…
“There are reasons to be optimistic because we’ve some really strong buying out of China for corn,” he said. “They seem to be having trouble with their corn crop, and as they rebuild their hog herd and expand on their poultry production, it looks like they’re going to need some corn.”
He says more corn could also be going to China as part of the Phase One trade agreement. The new marketing year starts Tuesday.