ST. LOUIS -- Demand for corn will exceed production this year by nearly one billion bushels, according to significant research just released by Doane Advisory Services, a multi-media provider of information and analysis to agriculture.



Doane economists also forecast that an increase in future demand for ethanol will result in a shift to corn from soybeans.



Doane's annual corn/soybean survey and forecast, now available at www.doane.com/forecast, concludes a corn crop of 10.8 billion bushels and soybean crop of 2.98 billion bushels this year.



"Our long-term forecast calls for corn-planted area to be 85 million acres by 2009, an increase of seven percent," says Marty Foreman, Doane's feedgrain economist.



"Corn yields are on par with trends due to improved technology and farming practices. This has helped counter the potential negative impacts of two relatively dry U.S. growing seasons," said Foreman. "Despite this, it's important to recognize that demand will exceed corn production this year by nearly one billion bushels. This reinforces Doane's forecast that increased corn production area will be needed to maintain a balanced global supply and demand outlook.



"With soybean supplies in a more balanced situation, we expect market signals and economics will favor corn production relative to soybeans to enable producers to make decisions that are aligned with market realities."



This information and other details on crop production and market trends are outlined in the just-released report from Doane Advisory Services. The research, now in its 23rd year, encompassed nearly 3,000 driving miles through seven Midwestern states by Doane economists, and the resulting report represents more than two-thirds of the U.S. planted acres of corn and soybeans.

Results of Doane's August surveys and forecasts have, on average, proven to be more reliable indicators of the final production estimates for corn and soybeans than USDA's August estimates (when compared to USDA's final report released in January).



"Doane has been compiling this information for more than two decades, and our record in crop surveying and forecasting is unmatched by any other paid advisory service," says Ken Morrison, Doane's Managing Director. "Our clients depend on this 'ground truth' of U.S. corn and soy crop conditions from Doane's experts to provide insight necessary to make informed price, risk, and production decisions."

Doane has traditionally only offered its forecast of U.S. corn and soybean production to clients and subscribers. Now, the general public and other interested parties such as professional traders, investment managers and financial risk managers can also purchase this value-added product directly from Doane. The decision to share the survey results with the public recognizes, in part, the importance these crops pose as alternative energy sources.



Doane also conducts an annual Crop Survey and Forecast of U.S. winter wheat each April. It was one of the first advisory services to recognize this year's decline in U.S. hard winter wheat production in the drought-stricken areas of key southwestern production areas.



Vance Publishing Corp. acquired Doane Agricultural Services (now Doane Advisory Services) in October of 2005 and incorporated it into its food360 division. Doane Advisory Services operates out of St. Louis and provides a variety of economic advisory products, both research and forecasting, such as Doane Agricultural Report, AgServ, Doane Commercial Advisor and Doane.com.



Food360, based in Lenexa, Kan., was formed in January 2005 by combining three divisions (Produce Division, Crops Division and Livestock Division) to bring a full-chain view to the food industry, encompassing every point in the chain from production agriculture to retailers and foodservice.

Since its founding in 1937, Vance Publishing has been a recognized leader in business information and communications. Vance serves select business-to-business markets with 24 magazines, a host of newsletters, Web offerings, economic advisory services, event management, proprietary research and analysis, and data and custom media products.



SOURCE: Doane Advisory Services via Business Wire.