U.S. corn and soybean producers are again on pace to set a new high in yields according to USDA's Aug. 12th Crop Production report. Last years corn crop was a new record, and soybeans were the third highest ever.
Corn
Corn production is projected at 14 billion bushels, based on conditions as of Aug. 1st. Yields are expected to average 167.4 bushels per acre, up 8.6 bushels from 2013. If this turns out to be correct it'll be the highest yield recorded in the United States.
Market analyst Brain Basting, Advanced Trading, said in a recent interview with Delta Farm Press that the corn production numbers "were a little below the average trade guess of 14.25 billion bushels. It's a start, a mark on the wall. Historically, there have been significant changes over time relative to the August report."
USDA's estimated ending stocks for corn, at 1.8 billion bushels, was also well below the average trade guess of 2.03 billion bushels, according to Basting. "The key thing now is to see if we have some more export demand surface at these lower prices."
Soybeans
Soybean production is forcasted at a record 3.82 billion bushels, up 16 percent from last year. Based on Aug. 1st conditions, yields should average 45.4 bushels per acre, up 2.1 from last year. Area for harvest in the United States is expected to be 84.1 million acres, up 11 percent from last year.
Soybean carryout is expected to be 430 million bushels "which is exactly triple the estimate for 2013-14, at 140 million bushels," Basting said. "That is a burdensome carryout. The trade is going to be watching the weather the last three weeks of August. The southwestern Midwest did get some good rains recently which helped those double-cropped soybeans there. The soybean market is looking at what could be the largest soybean crop ever."
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