WASDE Reports Reflect Lower Corn & Bean Production

One of the more pivotal reports of the growing season was released Monday, and showed higher prices, lower yields and production – that’s the bottom line on the latest crop reports from USDA. Corn and soybean yields and production as expected are off in USDA’s first survey-based crop reports this season. World Ag Outlook Board Chair Gerald Bange says the soybean forecast was off 165-million bushels – corn 187-million bushels from the July forecast…

“Corn came in at 154.4 bushels per acre, that is down 2.1 bushels from what we previously thought. Soybeans came in at 42.6 bushels per acre, down 1.9 bushels. Plus in the case of soybeans they did reduce the estimate of harvested acres by about 500,000.”

Putting soybean production at nearly 3.3-billion bushels – still up eight-percent from a year ago – and corn at almost 13.8-billion – up 28-percent versus last year’s drought-ravaged crop. And the resulting tighter supplies has moved prices higher. Bange on corn…

“We are looking at $4.90 which is a stronger price and up 10 cents over our previous forecast. Somewhere between $4.50 and $5.30 a bushel for corn, at $4.90 that would be down considerably from the $6.95 recorded in 12-13. For soybeans, we are looking between $10.35 and $12.35, and increase of 60 cents on each end and gives us a price of $11.35.”

Down sharply from 14-40 in 2012-2013 – but still high enough to pressure U.S. exports – with competitors making up U.S. losses versus last month’s forecast – 65-million bushels for soybeans – 25-million for corn…

“We will see a lot of corn coming out of places such as the Ukraine. With regard to Brazil we are still seeing high competition with the carry over from last year. Our export forecast for 2013-14 is up 71%.”

And 5.3-percent for soybeans.

Separately – the 2013-2014 season-average wheat price is lowered 10-cents per bushel to seven-dollars even on larger world supplies that offset tighter domestic ones. U.S. Wheat exports are raised 25-million bushels on strong early season sales and stronger expected China imports. World production is set to hit a record 705-million tons.

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