This is Gwen Outen with the VOA Special English AgricultureReport.
Late summer is when many farmers begin to know what size harvestto expect in the fall. And it appears that American farmers canexpect several major crops to be at or near record levels this year.
The Agriculture Department says corn production is expected toreach almost eleven thousand million bushels. Each bushel is alittle more than thirty-five liters. The United States is thelargest producer and exporter of maize. A harvest this big would beeight percent larger than last year’s levels, which set a record. Itwould also represent greater productivity. Farmers expect a recordyield, or the amount produced per hectare.
The soybean crop this year is expected to be the second largestever recorded. It is expected to be nineteen percent larger thanlast year. The soybean yield is also expected to increase.
Cotton farmers are also expected to have a good year with aneleven percent increase in their harvest. They are expected toproduce twenty million bales of cotton. One bale weighs about twohundred twenty-seven kilograms.
Big harvests may seem like good news for farmers. Experts creditgood weather conditions and improved seed for higher farm productionand yields. But there are the laws of supply and demand. If supplyincreases, unless demand also increases, prices can drop. And priceshave been going down through the summer.
In April, the price of corn futures reached their highest levelin years. But since April, prices of corn futures on the ChicagoBoard of Trade have fallen by about thirty percent. Futures arefinancial tools that generally do not involve the exchange of realgoods, but they can affect prices. Farmers or investors use futuresto protect against changes in the market.
Prices for soybean futures have also dropped from highs in April.The United States Department of Agriculture says China may decreaseits soybean imports. China is the world’s biggest importer ofsoybeans. At the same time, Argentina, Brazil and Paraguay — allbig South American producers of soybeans — have surpluses.
Lower prices and too much supply may not help farmers. But theydo help companies that buy from farmers. Lower prices can alsoincrease exports.
This VOA Special English Agriculture Report was written by MarioRitter. This is Gwen Outen.