USDA expects higher production but lower corn yield with soybeans decreased

HOUSTON (ICIS)–The US Department of Agriculture (USDA) is expecting higher corn production but lower yield with soybean output and yield reduced according to the September World Agricultural Supply and Demand Estimate (WASDE) report.

Corn production is being forecasted at 15.1bn bushels, up 23m bushel from last month as greater harvested area more than offsets a reduction in yield.

The national average yield is forecast at 173.8 bushels per acre, down 1.3 bushels with harvested area now expected to be 87.1m acres, up 800,000 acres.

Extreme temperatures and a lack of consistent rain impacted many states this summer with the periods of heat and dry weather coming for many areas just as the pollination and filling out of crops were underway.

Total corn use is unchanged at 14.4bn with the agency saying that due to supply rising slightly and use unchanged, ending stocks are calculated to be up 19m bushels to 2.2bn bushels.

The monthly updated also said the current US corn outlook is for slightly larger supplies and ending stocks with projected beginning stocks for 2023-2024 lowered by 5m bushels due to offsetting trade and corn used for ethanol changes.

The season-average corn price received by producers is unchanged at $4.90/bushel.

For soybeans the September WASDE showed that supply and use changes include lower beginning stocks, production and ending stocks.

The agency said its estimate of lower beginning stocks reflect an increase seen recently for exports.

For production the monthly update is now projecting there will be 4.1bn bushels, which is down 59m bushels with higher harvested area offset by a lower yield.

Harvested area is raised by 100,000 acres from the August forecast while soybean yield is now at 50.1 bushels per acre, a decrease of 0.8 bushels from last month.

Ending stocks are projected at 220m bushels, down 25m bushels from last month.

The season-average soybean price is being forecasted at $12.90/bushel, which is up 20 cents from last month.

The next WASDE report will be released on 12 October.