11 October 2012 20:37 [Source: ICIS news]
HOUSTON (ICIS)--US corn futures prices were pushed higher on Thursday as the US Department of Agriculture (USDA) reported the first hard assessment of the 2012 harvest.
At the Chicago Mercantile Exchange, December corn contracts closed at $7.73/bushel, an increase of 36 cents/bushel from the prior day's close.
The USDA said in its October crop production report that corn production was forecast at 10.7bn bushels, down slightly from the September estimate, and the lowest since 2006.
Based on conditions as of 1 October, yields were estimated at 122 bushels/acre, down by 0.8 bushel/acre from the September forecast, and 25.2 bushels below the 2011 average.
If realized, the corn yield will be the lowest average yield since 1995, USDA said.
Soybean production was forecast at 2.86bn bushels, up by 9% from the September estimate, but down by 8% from last year.
November soybean futures closed at $15.48/bushel, up by 25 cents/bushel from the prior day.
In the US this year, about 5bn bushels of corn will be used in the production of ethanol. Each bushel of corn on average yields 2.8gals of ethanol.
US soybean oil provides about 50% of the feedstock for the domestic production of biodiesel. One bushel of soybeans yields enough oil to produce 1.5gals of biodiesel.
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