Crop yields continue to grow across the United States as farmers prepare for what is being projected as a record yield. As farmers produce more crops, there comes the task of finding the demand for them, both domestically and globally. Krista Swanson, lead economist with National Corn Growers Association says the shifting demand for corn globally has had a substantial impact on prices.
โWe’re looking at over 15 billion bushels corn crop again this year, but when we think more broadly, certainly the domestic dynamics are impacting our corn price, but also, just in the last 15 years, the major shift in world production is something we have to think about too,โ says Swanson. โIn 2007 the US produced almost two-thirds of the world’s corn production, and this year will likely be less than 1/3 of the world’s corn production. So when we think about the impact of the global supply and demand set up on corn price- it’s a really big deal.โ
Swanson says corn production in South America has seen โmassive growthโ with the potential for continued expansion.
