US corn forecast slashed 4% from Sept, soybeans down 2% - USDA

08 October 2010 16:26  [Source: ICIS news]

HOUSTON (ICIS)--US corn production in 2010 is forecast at 12.7bn bushels, the US Department of Agriculture (USDA) said on Friday, down 4% from the September forecast and off 3% from 2009's record production of 13.1bn bushels.

In its monthly crop progress report, USDA’s forecast for soybean production fell 2% from the September estimate. However, soybean producers were still on track to deliver a record-high crop of 3.41bn bushels.

Based on conditions as of 1 October, USDA said corn yields were expected to average 155.8 bushels/acre, down 6.7 bushels from the previous month and 8.9 bushels below last year’s record of 164.7 bushels.

Forecasted yields decreased from last month throughout much of the corn belt and Tennessee valley regions. Illinois showed the largest decline, down 14 bushels/acre.

Indiana and Iowa were both down 10 bushels from the previous month, while Missouri and Nebraska declined by 9 bushels/acre.

Area harvested for grain was forecast at 81.3m acres, up less than 1% from the September forecast.

Soybean production was forecast at a record high 3.41bn bushels, down 2% from September but 1% above last year.

Soybean yields were expected to average a record high 44.4 bushels/acre, down 0.3 bushels from last month but up 0.4 bushels from last year.

Area for harvest in the US was forecast at 76.8m acres, down 1% from the previous estimate but up 1% from 2009.

US corn futures traded higher on Thursday ahead of the report, with commodity grain traders and market analysts correctly betting that estimates would be cut from September.

In early trading on Friday at the Chicago Mercantile Exchange, analysts shrugged off USDA’s lower estimates, pushing corn a penny lower from Thursday at $4.97/bushel. Meanwhile, soybeans were up 7 cents to $10.72/bushel.

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By: Frank Zaworski
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