Reduced Corn and Soybean Harvests Expected, But If Realized, “Corn Would Still Be the Second Biggest on Record”

Reuters writer Mark Weinraub reported on Friday that, “U.S. corn and soybean harvests will be smaller than previously expected as dry conditions early in the growing season robbed the crops of yield potential, the government said on Friday.

“Both forecasts fell below market expectations, but the corn crop, if realized, would still be the second biggest on record due to large acreage and as growing conditions improved during the key development month of July.

“The U.S. is expected to be the No. 2 exporter of soy and corn, after Brazil, this year.”

The Reuters article pointed out that, “Corn production was pegged at 15.111 billion bushels, based on an average yield of 175.1 bushels per acre, according to the U.S. Agriculture Department’s monthly World Agricultural Supply an Demand Estimates report. Soybean production was seen at 4.205 billion bushels, with yields pegged at 50.9 bushels per acre.

“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.”

Dow Jones writer Kirk Maltais reported on Friday that, “Corn for December delivery fell 1.8%, to $4.88 a bushel, on the Chicago Board of Trade on Friday, after the USDA’s WASDE report generally showed forecasts in line with those of analysts.

“Soybeans for November delivery fell 0.9%, to $13.07 1/4 a bushel.”

Also Friday, Reuters writer P.J. Huffstutter reported that, “Chicago soybean and grain futures turned lower on Friday as improving growing weather led investors to anticipate that U.S. Midwest crop conditions will improve, traders said.”