By Ryan Hanrahan
Bloomberg’s Michael Hirtzer reported that “corn surged the most in three months after the US Department of Agriculture surprised traders with a bigger-than-expected cut to yield and production of America’s most widely grown crop.”
“While a small trim in USDA’s monthly supply and demand outlook was anticipated, the scale of the reduction caught traders off guard, with futures in Chicago rising by as much as 3.7% after the report was published,” Hirtzer reported. “Farmers have been complaining about the accuracy of the agency’s reports — and also replying less to surveys that are used by the USDA to produce the data. Tuesday’s report is the third time to spark increased volatility since the end of September. Such turbulence in USDA reports has prompted efforts at the agency to modernize.”
AgWeb’s Michelle Rook reported that “while it is rare for corn yield to go down from October to November, the agency provided a bullish surprise with a bigger-than-expected cut.”
“USDA lowered corn yield 1.6 bushels per acre from October to 179.6 bu., which was below trade estimates,” Rook reported. “Of note when it comes to individual states: Illinois: Down 8 bu. (to 200 bu. per acre). Indiana: Down 5 bu. (to 195 bu. per acre). Missouri: Down 5 bu. (to 176 bu. per acre). Nebraska: Down 4 bu. (to 184 bu.per acre). Minnesota: Up 9 bu. (to 204 bu. per acre). Iowa: Unchanged at a record 219 bu. per acre.”
Source : illinois.edu