Estimated corn production for this year increased by 3% to 14.4 billion bu. in this week’s USDA Crop Production report. That’s also 3% more than last year’s crop. Based on conditions, Sept. 1, USDA analysts increased average yield estimates 4.3 bu./acre from the August forecast to 171.7 bu./acre. That’s 12.9 bu./acre more than last year’s average. If realized, it will represent the most yield and production ever recorded in the U.S. Keep in mind corn acres this year are estimated to be 83.8 million acres, which is 4% less than last year.
With projected ending U.S. corn stocks higher than at any time since 2004-2005, the monthly World Agriculture Supply and Demand Estimates released this week knocked back the projected season-average corn price a smooth 40¢/bu. at the mid-point to $3.20-$3.80/bu.
Soybean production is projected 3% higher than the August estimate and record-large at 3.91 billion bu. That’s 19% more than last year. Average yields are projected at a record-high 46.6 bu./acre. Ending soybean stocks are projected to be the highest since 2006-2007. The season-average soybean price is estimated at $9-$11/bu. Soybean meal prices are estimated at $330-$370/short ton.
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