The market giveth and the market taketh away. Winter wheat is forecast at 1.44 billion bushels, down 1 percent from USDA’s July number but up 4 percent from 2014. And Nebraska’s production will increase 3.8 per cent to 1.66 billion bushels. Georgia’s corn yield is forecast to average 180 bushels per acre.
“What we have in this report is better than expected”, Hurt explained.
Crop production was down in the eastern corn belt – Indiana, Illinois and Ohio.
What’s potentially misleading about the USDA’s yield decreases relative to a year ago? “National yield is forecast at a record 29.9 tons per acre”. Therefore 2014 in my opinion should nearly be considered an outlier based on just how remarkable and unprecedented of a growing season it was. “I’m wondering what the top-end potential will be with everything that was left”.
Record soybean yields were forecast in eight states, including and. Twenty-four percent of soybeans was rated in those conditions. Sorghum exports are raised for the United States with the larger crop.
Soybean futures fell as much as 7.2 percent and wheat was down was much as 4.7 percent.
The USDA’s ag report predicting record yields for corn is already driving the price of corn down.
“Overall, we feel good about it for Kansas”, said Greg Krissek, CEO of the Kansas Corn Growers Association. Corn acreage is estimated at 4.10 million acres, of which 3.10 million of the acres will be harvested for grain.
The USDA forecast corn supplies after harvest hitting a record 15.5bn bushels. 9 bushels higher to 46.9 BPA in this report pushing ending stocks 169 million bushels above analyst expectations to 470 million bushels.
The revised manufacturing figures surprised analysts, who had anticipated estimates would decline after drenched elements of the japanese Midwest, leaching vitamins from the soil in corn fields and stopping some farmers from seeding soybean crops.
Larger supplies of corn may reduce costs for ethanol refiners including Archer-Daniels-Midland Co. and Valero Energy Corp. and meat producers such as Tyson Foods Inc. and Smithfield Foods Inc., which buy the grain for livestock feed. It had lowered its outlook for 2015/16 soy ending stocks in the previous two monthly reports. Soybean yield was revised. Illinois and Indiana’s soybean crops are only rated 50% and 45% good-to-excellent respectively. The area harvested is expected to be 81.1 million acres, also down 2 million acres.
The U.S.is likely one of the… New-crop sales of 65.6 million went to China and unknown destinations. If realized, other hay yield would be the highest since 1997.