USDA continues to increase its projection for the 2018 corn crop adding 1.9 bushels to the average yield from the September forecast. The October Crop Production Report average of 171.8 bushels per acre is expected to yield a total crop of 14.3 billion bushels, up 1 percent from the September report.
The corn crop increase was largely offset on the demand side. The World Agricultural Supply and Demand Estimates (WASDE) also released today increases projected feed and residual use by 25 million bushels, putting the net increase in ending stocks at 5 million bushels over last month. Corn trade was up in the 3 cent range following the news.
USDA trimmed soybean estimates, taking .04 bushels from last month and pegging the crop at an average of 49.5 bushels per acre and total production at 4.43 billion bushels. The total crop is 3 percent above a year ago and would be a record soybean crop. USDA also boosted soybean acreage by 1 percent over the September report. WASDE projects soybean ending stoks at 430 million bushels which would be the highest stocks to use ration since 2006/07. Beans were trading up sharply on the news.
WASDE pricing estimates for corn and soy were unchanged. The outlook for corn remains at $2.80-$3.60 per bushel. Soybean prices are projected to remain in the $8.35-$10.05 range.
Cotton production is reduced 3 percent from September at 21.1 million bales. Yield is projected at 889 pounds per harvested acre on average, the second highest on record.
Watch AgWeb.com for in-depth analysis throughout the afternoon.