Market News & Headlines >> USDA Crop Report a Shocker for Soybean Market
USDA on Monday morning shocked the soybean market by lowering its estimate of U.S. crop production by nearly 3.4% and also lowered estimated corn production by nearly 2.9% cutting both yields and harvested acreage of both crops.
USDA pegged the 2022 U.S. soybean crop at 4.378 billion bushels, down from an August estimate of 4.531 billion bushels and the 2021 crop of 4.435 billion. The new USDA estimate was below trade expectations, which averaged 4.500 billion bushels in a range from 4.441-4.568 billion bushels, according to a Bloomberg News survey.
USDA cut its estimate of the U.S. soybean yield to 50.5 bushels per acre compared with its August estimate of 51.9 bushels and last year’s yield of 51.4 bushels. USDA’s yield estimate was also below trade expectations and a full bushel below the average of expectations. In addition, the agency lowered soybean plantings by 830,000 acres and cut harvested soybean area by 600,000 acres.
USDA put 2022 U.S. corn production at 13.943 billion bushels, down from an August estimate of 14.359 billion bushels and last year’s crop of 15.115 billion. The new corn crop estimate was toward the low end of trade expectations, which averaged 14.089 billion bushels in a range from 13.895-14.307 billion, according to the Bloomberg survey.
USDA lowered its estimate of the U.S. average corn yield to 172.5 bushels per acre compared with its August estimate of 175.4 bushels and last year’s yield of 177.0 bushels per acre. The yield estimate compared with trade estimates averaging 172.4 bushels in a range from 170.0-174.9 bushels. USDA also lowered its estimate of U.S. corn plantings by 1.221 million acres and cut harvested corn area by 996,000 acres.