Corn, Soybean Crops No Big Surprise
Friday morning’s USDA crop production report held no big surprises for the corn and soybean markets and appeared to be slightly bearish for corn prices and neutral for soybean prices.
USDA pegged the U.S. corn crop at 10.350 billion bushels as of Aug. 1, compared with trade estimates averaging 10.235 billion bushels in a range from 9990-10.601 billion bushels and last year’s record 11.807 billion bushel crop.
The Aug. 1 survey estimate was down 435 million bushels from the USDA’s previous trend-line production estimate of 10.785 billion bushels.
The national average corn yield was put at 139.2 bushels per acre versus trade estimates averaging 138.16 bushels in a range from 135-142.5 bushels and last year’s record 160.4 bushel yield.
The USDA pegged the U.S. soybean crop at 2.791 billion bushels versus trade estimates averaging 2.804 billion bushels in a range from 2.744-2.857 billion bushels and last year’s record 3.141 billion bushel crop.
The Aug. 1 survey estimate was down 99 million bushels from the USDA’s previous trend-line estimate of production.
The national average soybean yield was pegged at 38.7 bushels per acre versus trade estimates averaging 38.69 bushels per acre in a range from 38-39.5 bushels and last year’s record 42.5 bushel yield.
The USDA’s soybean crop estimate may have limited impact on the soybean market since the crop is still going through its key growing stages, although development is ahead of normal. The past two years the final crop number has differed significantly from the Aug. 1 estimate.
Editors note: Richard Brock, The Corn and Soybean Digest's Marketing Editor, is president of Brock Associates, a farm market advisory firm, and publisher of The Brock Report.
To see more market perspectives, visit Brock's Web site at www.brockreport.com.