Corn: Five Consecutive Large Crops?

The USDA's June Acreage Report revealed that U.S. producers had planted nearly 79.6 million acres of corn in 2000, up from 77.4 million planted in 1999 and nearly 1.7 million above March intentions.June 1 corn stocks were estimated at just under 3.6 billion bushels, nearly 30 million smaller than inventories of a year ago, but about 100 million more than expected.At mid-July, the U.S. corn crop was making rapid progress toward maturity and was in generally good condition.The status of the crop points to another large crop in 2000.Even with an increase in consumption, stocks are likely to accumulate by the end of 2000-01 marketing year.Prices are expected to average near or below the Commodity Credit Corporation (CCC) loan rate for the third consecutive year.Pricing decisions will be centered around the use of the marketing loan program.