The U.S. Department of Agriculture (USDA) is predicting that world corn production will rise by the end of the year, leading to a 43.4-million ton increase in corn production for 2010/2011, reports the Des Moines Iowa Register.
Strong foreign production coupled with increased demand from ethanol plants is leading to an increase in the amount of corn produced. The projection will likely lower the price of corn slightly, reports the news source. The crop has been selling at about $6 per bushel as of late, though it was up beyond $7 per bushel earlier this year.
For next year, the USDA predicts a record high in global corn production, though it says that the U.S. appears to be on track to produce 3.5 million fewer tons of corn.
Predicting the price of corn can be very difficult for farmers, as there are so many factors that go into it, and even the slightest change in the markets can cause the price to swing. Thus, it's smart business to keep costs as low as possible, such as through buying used agricultural equipment on IronPlanet. The auction site has a wide variety of combine harvesters, tractors, dump trailers and much more that can help any agricultural business keep their costs down and get the equipment they need.
