Market News & Headlines >> USDA Cuts Corn Crop, Raises Soy
USDA provided the corn market with a mild surprise on Monday morning, cutting its estimate of U.S. corn production by 68 million bushels or 0.5% when the trade was expecting a further increase.
Trade estimates of U.S. corn production averaged 14.551 billion bushels in a range from 14.242-14.842 billion bushels compared with USDA’s October crop forecast of 14.475 billion bushels and last year’s crop of 13.925 billion, according to a Reuters News Service survey of 24 analysts.
USDA’s monthly Crop Production report did not hold a similar surprise for the soybean market. USDA raised its estimate of U.S. soybean production by 31 million bushels to 3.958 billion in line with trade expectations, which averaged 3.967 billion bushels in a range from 3.903-4.064 billion, compared with USDA’s October estimate of 3.927 billion.
USDA lowered its estimate of the U.S. average corn yield to 173.40 bushels per acre from 174.20 bushels in October. Trade estimates of the U.S. yield averaged 175.23 bushels. USDA put the U.S. soybean yield at 47.5 bushels per acre, up from its October forecast of 47.1 bushels and very close to the consensus of trade estimates, which was 47.61 bushels.