Market News & Headlines >> USDA Cuts Soy Production; Raises Corn Crop Slightly

Tuesday’s USDA Crop Production report reduced U.S. corn and soybean yields as expected in the wake of a hot, dry August, but failed to deliver an expected cut in overall corn production due to an increase in estimated crop acreage.

USDA pegged U.S. corn production at 15.134 billion bushels, slightly above its September estimate of 15.111 billion bushels and above trade estimates that averaged 15.008 billion bushels in a range from 14.762-15.125 billion.

USDA lowered its forecast for the U.S. average corn yield to 173.8 bushels per acre from its August forecast of 175.1 bushels. The new estimate was just 0.3 bushels above the average of trade estimates. However, USDA also raised its estimate of harvested corn acres by 774,000 to 87.096 million compared with the August estimate of 86.322 million.

USDA pegged U.S. soybean production at 4.146 billion bushels down 59 million from its August estimate of 4.205 billion and closely in line with trade expectations that averaged 4.157 billion bushels in a range from 4.100-4.218 billion.

USDA lowered its forecast for the average U.S. soybean yield to 50.1 bushels per acre from its August forecast of 50.9 bushels. The new yield forecast was just 0.1 bushel above the average of trade estimates. USDA did raise its estimate of harvested soybean acres by a modest 95,000 acres to 82.696 million, but that was not enough to offset the impact of the yield loss on production.

USDA’s National Agricultural Statistics Service adjusted its harvested acreage estimates for corn and soybeans based on Farm Service Agency data on acreage signed up for USDA price support programs.