Prices plunged in the grain and oilseed sector on Wednesday after USDA raised its outlook for U.S. crop production and yields this fall.
The Ag Department pegged corn output this autumn at 13.686 billion bushels on yields of 168.8 bushels per acre.
USDA estimated soybean production at 3.916 billion bushels on yields of 46.9 bushels an acre.
Some traders called the numbers ‘a shocker’. Adverse weather in parts of the Farm Belt this summer had led to expectations that the government would trim both its corn and soybean projections.
Relentless rains in June helped fuel a spike in futures prices, but analysts say it now looks like weather concerns will move to the backburner – if not eliminated altogether.
To get a handle on the numbers, analysts say you can examine production from west to east across the nation’s midsection. Weather was conducive for corn and soybean fields in western Corn Belt states like Iowa, while Mother Nature wasn’t as kind in eastern areas like Indiana.
Folks are said to be having a hard time gauging total production when the far western belt was so good, and the far eastern belt is so bad.Share