Reuters News reported yesterday that, “The government said on Wednesday that U.S. farmers will harvest massive crops of both corn and soybeans this year, boosting the supply base despite drought conditions stressing plants during early stages of development.
“The unexpectedly large forecasts immediately pushed down corn and soy futures, potentially easing inflation and making U.S. exports more competitive with South America in coming months.
“The corn harvest was pegged at a record large 15.320 billion bushels and soybean harvest at 4.300 billion bushels, according to the U.S. Agriculture Department’s monthly World Agriculture Supply and Demand Estimates report.”
The Reuters article explained that, “USDA predicted record yields for both crops, with corn seen at an average of 177.5 bushels per acre and soybeans at 52.0 bushels per acre.”
Also yesterday, Dow Jones writer Kirk Maltais reported that, “Hot and dry weather in June pushed yield expectations for U.S. corn crops planted this spring lower, according to government data.
“In its latest world agricultural supply and demand estimates report Wednesday, the Department of Agriculture forecasts that corn yields will be an average of 177.5 bushels an acre, a drop from 181.5 bushels an acre projected last month.”
The Dow Jones article pointed out that, “Hot weather and growing drought conditions throughout the Corn Belt in June were seen as the primary factors behind the yield cut for corn, the USDA said.
“‘Harvested-area-weighted June precipitation data for the major Corn Belt states represented an extreme downward deviation from average,’ the agency said. ‘However, timely rainfall and cooler than normal temperatures for some of the driest parts of the Corn Belt during early July is expected to moderate the impact of June weather.'”
Maltais added that, “Meanwhile, estimates for wheat production were raised by the USDA, with 1.75 billion bushels now expected, up from 1.665 billion bushels forecast last month. Analysts were expecting an uptick of 12 million bushels, to 1.677 billion bushels.”
Source: illinois.edu
Photo Credit: gettyimages-fotokostic
Categories: Illinois, Crops, Corn, Soybeans