The United States Department of Agriculture (USDA) released its monthly World Agricultural Supply and Demand Estimates (WASDE) report on August 11, 2023. The report projected that U.S. corn and soybean harvests would be smaller than previously expected due to dry conditions early in the growing season.
Corn production was pegged at 15.111 billion bushels, based on an average yield of 175.1 bushels per acre. This is down from the USDA's previous forecast of 15.320 billion bushels. Soybean production was seen at 4.205 billion bushels, with yields pegged at 50.9 bushels per acre. This is down from the USDA's previous forecast of 4.300 billion bushels.
The smaller-than-expected soybean harvest would tighten up domestic ending stocks in the 2023/24 marketing year to an eight-year low of 245 million bushels even as export demand eases, USDA said. Corn stocks were seen ballooning by 51% to a five-year high of 2.202 billion bushels as USDA cut its outlook for demand in both the export and feed sectors.
The WASDE report generally showed forecasts in line with those of analysts. Corn for December delivery fell 1.8%, to $4.88 a bushel, on the Chicago Board of Trade on Friday, after the report. Soybeans for November delivery fell 0.9%, to $13.07 1/4 a bushel.
Improving growing weather led investors to anticipate that U.S. Midwest crop conditions will improve, traders said. The USDA's weekly crop progress report released on August 8, 2023, showed that 65% of the U.S. corn crop was in good or excellent condition, up from 62% the previous week. Soybean conditions were also improving, with 64% of the crop in good or excellent condition, up from 62% the previous week.
Photo Credit: istock-fotokostic
Categories: Illinois, Crops, Corn, Soybeans