By Farms.com Editors
Excellent weather conditions for most of the growing season in many key U.S. growing crops producing areas are leading the USDA to project record corn and soybean production and yield estimates.
In the first survey based accounting of this year’s crop, corn is seen at 15.153 billion bushels with an average yield of 175.1 bushels per acre and harvested area of 86.550 million acres.
The US Soybean crop is pegged at 4.060 billion bushels with an average yield of 48.9 bushels per acre and harvested area of 83.037 million acres.
That supply increase pushed the new crop ending stocks estimate to 2.409 billion bushels, but the projection for soybeans was unchanged at 300 million bushels on expectations for strong demand.
The USDA also reduced its price outlook for next marketing year in response to the larger production figures.
This year’s wheat crop, all types, is expected to be 2.32 billion bushels with an average yield of 54.9 bushels per acre, both up sharply from last year, with very good growing conditions in most areas. Winter wheat is estimated at 1.657 billion bushels with an average yield of 54.9 bushels per acre and harvested area of 30.176 million acres. Spring wheat is pegged at 571.415 million bushels with an average yield of 48.3 bushels per acre and harvested area of 11.835 million acres.
Markets shrugged off USDA’s bearish record-breaking crop estimates in Friday’s Crop Production report. Some analysts cast doubt on the accuracy of the report’s big production numbers.
A second USDA survey in September will include kernel count and quality.
Corn prices fell immediately after release of USDA's August data, but then rose, and while the report held out good news for soybeans with surging exports, the high overall world supply of soybeans may have pushed prices downward.
Analysts said that despite the surge in production, China’s insatiable demand for soybeans should support the price and could even lift the price of corn, which fell on the bearish USDA numbers. September corn slid to $3.12 soon after the USDA report was released, but then gained to close up $3.22. September soybeans gained, rising to $10.06 soon after the report, but then dropped to $9.99.
Full coverage of the USDA WASDE report can be found at the following link:
http://www.farms.com/news/full-coverage-of-the-usda-reports-released-111429.aspx