Photo: Lynn Dombrowski via Flickr
Corn growers hope to plant 95.9 million acres of corn this year, the second-highest planned planted acreage on record, the USDA said in a report today.The planned acreage is a 4 per cent increase from last year and 9 per cent higher than in 2010.
In 1937, 97.2 million acres were planted.
Arkansas, North Dakota and Tennessee lead the way with an average acreage increase of 30% from 2011.
Demand has been buoyed from China, according to a Barclays research note. Chinese importers have bought 360 kilo-tonnes of corn for May and June delivery, the firm reported.
“We still believe that prices need to move higher to justify the demand rationing currently implied by the USDA’s balance sheet,” Morgan Stanley said in a recent commodities research note.
Corn prices are up 6 per cent today.