Friday, March 4, 2011

Iowa Corn Production Drops in 2010

Corn production in Iowa for 2010 was down from 2009 levels, coming in at 2.2 billion bushels, falling 267,000 bushels.

Final 2010 crop numbers released Tuesday by the U.S. Department of Agriculture show more soybeans were produced statewide and less corn compared to the previous year.

Local commodity prices responded in the exact opposite way some people might think.

Typically, commodity supplies affect prices. In this case, cash corn at East Central Iowa Cooperative based in Hudson dipped since Tuesday's report and soybeans have gone up.

Corn at Monday's close was $6.96 a bushel, compared to $6.87 Thursday afternoon in Hudson. Soybeans steadily climbed about 10 to 15 cents a bushel each day since Monday, from $13.01 a bushel to $14.41 Thursday afternoon.

When it comes to grain, a local commodity expert said supply is only a part of pricing.

"It's a small piece of the puzzle," said Brad Stewart, ECIC grain merchandiser. "We used to look at supply and demand to see what prices should be. Now, (buyers) look at next year to see what other countries will need for protein."

Iowa farmers produced 496.2 million bushels of soybeans last year, 10 million more than 2009. The average yield remained the same at 51 bushels per acre. Harvested acres increased by 200,000 in 2010 to 9.73 million.

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