Large corn crop on track, but pressure building

The latest yield projections by the Agriculture Department show U.S. farmers remain on target to harvest a large corn crop in spite of drought in some portions of the Corn Belt, according to the American Farm Bureau Federation.

The USDA's National Agricultural Statistics Service today raised its estimated national average corn yield by three bushels per acre to 155.8 bushels per acre, which is on the high side of analysts' pre-report estimates. The corn prediction of 13.3 billion total bushels is 254 million bushels more than last month's forecast due to the higher yield projection.

"The corn crop was further along and better able to withstand the hot and dry weather in August in the southern half of the Corn Belt and the Southeast than soybeans," said Terry Francl, AFBF senior economist. "Consequently, farmers are now embarking on the challenge of harvesting and storing a recordbreaking corn crop."

He cautioned that with a corn crop this large, some temporary storage and logistical problems will occur this fall.

Soybeans

Although supplies of soybeans are ample - with 555 million bushels - demand is expected to exceed available supplies by 340 million bushels, leaving U.S. carryover supplies at a very low 215 million bushels.

Cotton

In addition, Francl said the average cotton yield projection was increased as expected. The projection was raised to the high side of the pre-report estimates, up 29 pounds to 811 pounds per acre.

Livestock

In the livestock sector, beef production in 2007 is projected to decrease by 149 million pounds, the equivalent of more than 180,000 head, largely to supply effects of previous droughts.