By Joe Dales, Farms.com
The USDA released a number of reports that markets have been anticipating for the past few days.
Corn, soybeans and wheat futures bounced around after the USDA Crop Production report increased yields but not as much as analysts had expected and it resulted in lower overall production than was anticipated.
The 2014 U.S. corn production is estimated at 14.475 billion bushels, up less than 1% from September, with an average yield of 174.2 bushels per acre. The harvested acreage is set at 83.097 million acres. The 2014 U.S. soybean production is projected to be 3.927 billion bushels, slightly more than last month, with an average yield of 47.1 bushels per acre. The harvested acreage of soybeans is estimated at 83.403 million acres. If realized, these would be new all-time high average yields and new state records in soybeans for Illinois, Indiana, Missouri, Ohio, and South Dakota. USDA also lowered harvested acreage estimates by small amounts over previous reports.
The USDA WASDE World Agriculture Supplies and Demand Estimates report projected lower than expected supplies for corn, soybeans and wheat in the face of the record corn US production which has been driving grain futures to multi-year lows recently.
"The USDA reports are somewhat bullish but we are still producing record corn and soybean crops and there will be large inventories of grain,” Says Moe Agostino, Senior Marketing Strategist with Farms.com Risk Management. “I expect there to be pressure downwards on grain futures prices once the market has had time to digest these numbers.”
Full coverage of these reports and links to the USDA data can be found at the following page.