USDA forecasting less corn, soybean production due to reduced harvest and yield

HOUSTON (ICIS)–The US Department of Agriculture (USDA) is forecasting less corn and soybean production due to reduced harvest acreage and yield, according to the September World Agricultural Supply and Demand Estimate (WASDE) report.

The agency said this month’s corn outlook includes lower supplies, reduced exports and tighter ending stocks.

Corn production is forecast at 13.9bn bushels, down 415m bushels from last month based on reduced harvested area and yield expectations.

The national average yield is forecast at 172.5 bushels per acre, down 2.9 bushels, while harvested area for grain is forecast at 80.8m acres, down 1m acres.

Projected beginning stocks are 5m bushels lower based on essentially offsetting export and corn used for ethanol changes.

The USDA said exports are now projected at 2.3bn bushels, a drop of 100m bushels, while total corn use is reduced by 250m bushels to 14.3bn bushels.

With supply falling more than use, ending stocks are down 169m bushels to 1.2bn bushels.

The season-average corn price received by producers is raised by 10 cents to $6.75 per bushel.

For soybeans, the September WASDE shows a drop in production, with the agency projecting the crop at 4.4bn bushels, down 152m bushels with there being reduced harvested area and yield expectations.

Harvested area is down 600,000 acres from the August update, with the current yield forecast of 50.5 bushels per acre down 1.4 bushels per acre from last month.

The soybean export forecast is lowered 70m bushels on lower supplies, while ending stocks are projected at 200m bushels, which is down 45m bushels from last month.

The season-average soybean price is forecast at $14.35 per bushel, unchanged from last month.

The next WASDE report will be released on 12 October.