The United States Department of Agriculture recently released its agricultural projections through 2026.
It suggests that demand for U.S. corn will grow steadily over the next decade. Rising yields will boost production and support the growing demand, according to the usagnet news.
With the exception of a drop in 2017, corn production is expected to increase through the forecast period.
Lower corn prices and increasing corn production suggest that more corn will be used for feed and residual use.
This would help fuel rising meat production, according to usagnet news.
A slight increase in corn-based ethanol production is projected through the 2018-19 marketing year, after which it is expected to decline to levels just below those in 2015.
Falling domestic demand reflects a declining trend in U.S. gasoline consumption.
The United States is expected to remain the world’s largest corn exporter over the projection period even with talk of trade tariffs and the renegotiation of the North American Free Trade Agreement (NAFTA).
Rising incomes, particularly in developing economies, translate to an increasing demand for meat, bolstering the market for U.S. corn as a feed grain, usagnet reports.