USDA Increases Corn, Soybean Production Forecast

The Department of Agriculture Thursday upped its predictions for larger corn and soybean crops this year. The USDA World Agriculture Supply and Demand Report predicts corn production at 14.2 billion bushels and soybeans increasing to 4.3 billion bushels. The 2018/19 U.S. corn outlook includes larger supplies, greater feed and residual use, increased exports, and lower ending stocks. Increased 2017/18 exports are based on record-high shipments during the month of May. The season-average corn price received by producers was lowered 10 cents at the midpoint for a range of $3.30 to $4.30 per bushel. This month’s U.S. soybean supply and use projections for 2018/19 include lower supplies, lower exports, higher crush, and higher ending stocks. USDA predicts the new Chinese soybean import duties will lower exports down 250 million bushels. The U.S. season-average soybean price was forecasted at $8.00 to $10.50 per bushel, down $0.75 at the midpoint. Projected U.S. 2018/19 wheat supplies were raised 74 million bushels on increased beginning stocks and higher production. The season-average farm price was lowered $0.10 per bushel at the midpoint to a projected range of $4.50 to $5.50.