U.S. corn and sorghum production is projected to rise, according to data released Monday in the USDA’s World Agricultural Supply and Demand Estimates (WASDE). Corn production for 2005 is estimated at 10.6 billion bushels, approximately 44,000 bushels larger than industry analysts had predicted last week. The USDA also estimated 2005/2006 sorghum production at 398 million bushels, an increase of 18 million bushels over last month’s estimate. Barley production and export estimates remained steady at 237 million bushels and 25 million bushels respectively.

“The estimated corn crop would be the second largest ever in the United States,” said Ken Hobbie, U.S. Grains Council (USGC) president and CEO. “Despite the difficult weather many producers have endured this growing season, corn and sorghum crops in a number of states are reported as being better than previously thought. U.S. farmers have been able to again produce this year enough grain to supply both domestic needs and our customers around the world.”

Corn and barley exports this past marketing year exceeded USDA projections, reportedly by 3 and 2 percent respectively. The September WASDE estimates U.S. corn exports will increase by 50 million bushels during the 2005/2006 marketing year, due to increased imports by Egypt and Mexico. Egypt imported 580,000 metric tons (approximately 22.8 million bushels) in August, a record level equaling 24 percent increase over imports during the same month in 2004.

“Stable exchange rates due to economic improvements in Egypt and more competitive grain prices in the United States make our corn more attractive to Egyptian buyers,” said Chris Corry, USGC’s senior director of international operations. “The Council is pleased that our efforts to develop this market will see the level of U.S. imports in Egypt returning to where they were in 2002.”

In Mexico, increased economic stability has increased the buying power of the growing population, fueling the expansion of the livestock and poultry industries. U.S. grain imports are on the rise to meet these demands, as well as those of the industrial sector in Mexico. A stable currency exchange rate and the further improvements in the rail transportation system in Mexico also contribute to the expected rise in imports this marketing year.

The report also indicated that Hurricane Katrina’s impact on grain exports is expected to be temporary as grain exports resume through the Mississippi Center Gulf.

The U.S. Grains Council is a private, non-profit partnership of farmers and agribusinesses committed to
building and expanding international markets for U.S. barley, corn, grain sorghum and their products. The Council is headquartered in Washington, D.C., and has 10 international offices that oversee programs in nearly 80 countries. Support for the Council comes from its members and the U.S. Department of Agriculture.