Drought Causes Small U.S. Corn Crop

Feb 15, 2013

For the first time in history, Brazil is expected to export more corn than the United States.

Gerry Bange, U.S. Department of Agriculture Outlook Chairman, said information coming from Brazil shows that the country has a very strong corn crop while U.S. farmers and ranchers are dealing with the drought that hurt the U.S. corn production.

Argentina is also expected to produce a 28.5 percent bigger corn crop this season.

The U.S. is expected to export 42 percent fewer bushels this year.

As a result, Gary Crawford of the USDA reports that the USDA has taken 20 percent off of the U.S. corn price forecast; however, the estimate of $7.20 a bushel is still over 16 percent higher than a year ago.

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