Corn production is forecast at 14.4 billion bushels, up 3% from both August and 2013, while soybean production is anticipated at 3.9 billion bushels, up 3% from August and 19% from 2013. The California Navel orange production for the 2014-2015 timeframe was pegged at 1.62 million tons, dropping 4% from the previous season, says a USDA report.
Last month, I had the opportunity to offer testimony in support of the Environmental Protection Agency (EPA) proposal to modestly scale back the amount of ethanol required to be produced under the Renewable Fuel Standard (RFS).
Forecasters say there’s a heat dome over the Corn Belt, and soybean prices are nearing record totals. Food inflation fears and fuel worries continue. The drought is affecting 55% of the land mass in the lower 48 states.
A record corn forecast made corn prices plunge after the government predicted corn production would rise this summer. Thus, consumers could see some relief from higher food prices by late fall, if the latest crop forecast holds up.
It’s a year of highs and lows for the tortilla market and we still have to get ‘around the horn’ for six more months. The market has experienced strong growth, but will there be enough white corn production to last out the year, with harsh weather and such hot demand coming into play?