Click here for the Full USDA Report
The USDA raised its outlook for this year’s soybean crop, while lowering the estimate for corn. U.S. crop conditions and development rates have generally held at high levels, but some key growing areas have experienced crop weather issues this growing season, ranging from extremely wet weather to drought or near drought conditions.
As of September 1st, this year’s soybean crop is expected to be 4.201 billion bushels, up 3% from the August guess, with a record average yield of 50.6 bushels per acre and harvested area of 83.037 million acres. Corn is currently seen at 15.093 billion bushels with an average yield of 174.4 bushels per acre, both down on the month, but if realized, new record highs, and harvested area of 86.55 million acres.
World Agricultural Supply and Demand Estimates Report (WASDE)
The World Agricultural Outlook Board (WAOB) serves as USDA’s focal point for economic intelligence and the commodity outlook for U.S. and world agriculture. The Board coordinates, reviews, and approves the monthly World Agricultural Supply and Demand Estimates (WASDE) report, houses OCE's Joint Agricultural Weather Facility, and coordinates USDA's Agricultural Outlook Forum. |
Soybeans were lower on commercial and technical selling. The USDA raised the production and yield estimates, but also increased the export guess for this marketing year. The USDA also increased Brazil’s 2016/17 production estimate, while leaving Argentina unchanged. Argentina’s new crop export estimate was lowered slightly and Brazil was steady. Chinese soybean imports were held at 86 million tons. China bought 115,000 tons of 2016/17 soybeans Wednesday morning, 60,000 tons U.S. and 55,000 tons optional origin. Soybean meal was lower and bean oil was steady to weak.
Corn was lower on commercial and technical selling. USDA lowered the production and yield numbers, but still expects both to be new all-time highs. The corn for ethanol use estimate was unchanged. For Argentina, the 2016/17 production estimate was steady and exports were lowered slightly. For Brazil, the production estimate was up slightly and exports were unchanged. Production and export estimates for South Africa were not adjusted. Near term forecasts have harvest delays in parts of the Midwest. Ethanol futures were lower.
The wheat complex was lower on commercial and technical selling. U.S. ending stocks were up on the month and world ending stocks were only down slightly. The world production estimate was also a little bit lower, while exports were higher on increased expectations for Australia and Canada. Export estimates for the former Soviet Union were unchanged and Russia’s wheat production guess was steady at 72 million tons.
Source: USDA