News in brief: US farmers anticipate a potentially second-largest corn harvest due to improved conditions from July rains, which could lead to an increase in domestic corn reserves. The bumper harvest is driven by genetically modified drought-tolerant corn and could affect global corn markets, especially given Brazil’s surge in corn production.
Farmers in the US are predicting a very large harvest for corn, which could be the second-largest one on record, according to a Reuters report.
The prediction is based on July rains that made conditions much better for the crop after a hot summer. A bumper harvest would further boost domestic reserves as massive harvest in Brazil means lower demand for the country to export the crop.
Brazil is on course to dethrone the United States as global leaders in corn supplies after early projections.
Meanwhile, corn prices dipped by 18% from their late-June peak during July. Improved conditions in the field weighed heavily on the market as the drought damage from the early season appeared not to be as bad as feared.
In addition, genetically modified corn with drought tolerant genes enabled the crop to fare well in severe weather across much of the Midwest, farmers say. More than 90% of corn crops in the US is genetically modified.
The US government is expected to cut its forecast for domestic corn production to 15.135 billion bushels from estimated record high of 15.320 billion bushels for the year. It would still make it the second biggest harvest ever, if the forecast is achieved placing it behind the 2016 harvest of 15.148 billion bushels.
The US Agriculture Department disclosed that the percentage of corn rated good-to-excellent in 2023 also rose by 4% during July, which has only happened six times before in the previous 30 years.
Corn production plays a major role in the economy of the United States and it typically reserves 96,000,000 acres for it every year, exporting 13% of its annual yield is exported.
