Market News & Headlines >> USDA Seen Raising Crop Estimates
The grain trade, on average, expects USDA to raise its estimates of U.S. corn and soybean production modestly due to stronger-than-expected yields when it releases its monthly Crop Production report on Tuesday.
Trade estimates of U.S. corn production average 13.579 billion bushels, a marginal 24 million above USDA’s October crop forecast, in a range from 13.435-13.718 billion bushels, according to a survey of 20 analysts. Pre-report estimates of the U.S. corn yield average 168.4 bushels per acre in a range from 166.6-170.1 bushels compared with USDA’s October forecast of 168.0 bushels.
Trade estimate of the U.S. soybean crop average 3.915 billion bushels, up 27 million from USDA’s October crop forecast, in a range from 3.895-3.955 billion. Expectations for the U.S. soybean yield average 47.5 bushels per acre in a range from 47.3-48.0 bushels compared with USDA’s October forecast of 47.2 bushels.
Continued reports of better-than-expected corn yields in western and northern areas of the Midwest have helped spur expectations for an upward revision in USDA’s crop estimate. Strong corn yields in those areas are expected to offset poor yields in the eastern Corn Belt where excessive June and early July rains hurt the crop. Soybean yields, meanwhile have come in better-than-expected in most areas, including the wet eastern Midwest states.