As if this year hasn’t been eventful enough, now farmers are dealing with the roller coaster ride called marketing their crops. Today, the USDA released the August Crop Production report that took a major hit to grain futures. This monthly report contains crop production data for the U.S., including acreage, area harvested, and yield.
American farmers planted 2 percent fewer corn acres than forecast in the June estimate but still exceeded 2018 acres planted by 1 percent, according to the USDA report released today. The report indicates a 1.7 million-acre net decrease from the Acreage report released in June. At the same time, today’s report shows a 3.5 bushel per acre increase to national average yield projections from last month, with 169.5 bushels per acre now forecast. With increased yield projections more than offsetting decreased planted acres, total production for 2019/20 is now projected to reach 13.9 billion bushels. As a result, corn took a heavy hit by dropping 25 cents and capping off at its daily limit.
Ending stocks are forecast up by 171 million bushels to 2.2 billion given reductions to the projected demand for corn from the ethanol and export sectors, along with increased production projections. The season-average corn price received by producers lowered by 10 cents to $3.60 per bushel.
According to the report, “Soybean production for beans is forecast at 3.68 billion bushels, down 19 percent from 2018. Based on conditions as of August 1, yields are expected to average 48.5 bushels per harvested acre, down 3.1 bushels from 2018. Area harvested for beans is forecast at 75.9 million acres, down 4 percent from the previous forecast, and down 14 percent from 2018. Area planted for all purposes totaled 76.7 million acres, down 4 percent from the previous estimate, and down 14 percent from 2018.”
“All wheat production for grain is forecast at 1.98 billion bushels, up 3 percent from the previous forecast and up 5 percent from 2018. Based on August 1 conditions, yields are expected to average 51.6 bushels per harvested acre, up 1.6 bushel from the previous forecast, and up 4.0 bushels from 2018. Area harvested for grain is forecast at 38.4 million acres, unchanged from the previous forecast, but down 3 percent from 2018.” September wheat prices fell 32 cents after the report was released.
For the full Crop Production report, click here.
For the full World Agricultural Supply and Demand Estimates, click here.