UPDATE: USDA Reports Largest Soybean Crop Ever, as Stocks Grow

The U.S. Department of Agriculture says farmers are expected to harvest the largest soybean crop on record, but they have to deal with a constricted market in which to sell their crop.

The U.S. Department of Agriculture says farmers are expected to harvest the largest soybean crop on record, but they have to deal with a constricted market in which to sell their crop because of the administration’s tariff battle with China. New crop production numbers were released on Thursday. Corn remains on track to have the highest yield and the second highest production on record. USDA is forecasting the average corn yield at 178.9 bushels per acre. That’s down 1.8 bushels from October, but still up 2.3 bushels from last year. The cut to production was largely due to falling yields in Iowa, Minnesota, Illinois and South Dakota. As for soybeans, USDA is calling for an average yield of 52.1 bushels per acre. That’s down 1.0 from last month. We also have new cotton numbers. Production is forecasted at 18.4 million 480 pound bales. That’s down 7% from October, but yield is expected to average 852 pounds per harvested acres, off 49 pounds from last month and down 53 pounds from last year. The other side of the report shows stocks are continuing to grow. Corn ending stocks are 1.736 billion bushels. That’s down 77 million bushels from last month. Corn exports are reduced 25 million bushels based on expectations of increased competitions from Ukraine. As for soybeans, U.S. Soybean stocks are projected at 955 million bushels. That up 70 million from last month. USDA reduced exports on lower imports projected for China.

Related links:

USDA Crop Production Report

World Agriculture Supply and Demand Estimates

AgWeb-Logo crop
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Arlan Suderman, Chief Commodities Economist with StoneX says the corn and soybean markets were trading higher yields coming into the report and saw a positive reaction as a result.
A rare, late-season cut of 1.6 bu. per acre to the national corn yield dropped ending stocks to 1.758 billion bushels, while stronger export demand trimmed soybean carryout despite record yields across the Western Corn Belt.
Kyle Bumsted of Allendale, Inc. says, “The way we rallied off our lows here on Friday and the bounce we saw here on Monday, it does feel like cattle put in some sort of intermediate low.”
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