March 31, 2008
Strong prices and growing demand could draw more acres to corn, and if that doesn't work perhaps the USDA report released Monday morning will do the job, according to the Illinois Corn Growers Association.
"The Planting Intentions Report sends a Clear signal the market wants and needs more corn. ICGA hopes growers are paying close attention to key factors that make growing more corn a very viable option. The price ratio between corn and soybeans remains attractive for corn, and seed supplies for good corn varieties are ample. Demand remains strong for corn and for much of Illinois corn is a clear winner from a profit potential," said Art Bunting, Illinois Corn Growers Association President of Dwight.
Monday's report showed that farmers are expected to plant 86 million acres of corn this year, which is down about 8% from 2007. For Illinois, projected corn acres are down only 5%, Bunting observes. "High fertilizer costs, which were a negative factor toward planting corn, are now being offset by a strong market signal to plant more corn," he notes.
He adds that the key word in that USDA report is "intentions." The report is projection and a fair number of acres could remain uncommitted for days if not weeks. The reaction the report sparked at the Chicago Board of Trade should generate renewed attention for corn as farmers count the days until planters roll, the group notes.
Concludes Bunting:"Strong export demand for corn, growing demand for meat in the world, and a burgeoning biofuels industry all make corn look like a solid option."
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