Less Corn at Higher Prices Means Farmers Will Likely Plant More

Cindy Zimmerman

The US Department of Agriculture lowered its corn production forecast Thursday by one percent from last month to 10.7 billion bushels, but that’s still the second largest crop on record. Meanwhile, the corn price forecast rose 40 cents to $2.80 to $3.20 a bushel as demand remains brisk.

Expected corn use for ethanol this year was left unchanged at 2.15 billion bushels but farmers are likely to plant more acres in corn next year because of greated demand for ethanol, according to Keith Collins, chief economist for USDA.

Read more from AP.

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