Market News & Headlines >> USDA Surprises With Lower U.S. Corn, Soy Crop Estimates

USDA surprised the grain trade on Thursday by lowering its estimates of 2022 U.S. corn and soybean production on smaller estimated harvested acreage for both crops and a lower estimated soybean yield.

USDA lowered its estimate of 2022 U.S. corn production by 200 million bushels from November to 13.730 billion bushels, slashing its estimated harvested corn acres by a substantial 1.637 million acres or 2% to 79.207 million. USDA did raise its estimated U.S. corn yield by 1 bushel per acre from November to 173.3 bushels.

The new U.S. corn production number from USDA was below trade estimates that averaged 13.933 billion bushels in a range from 13.849-14.005 billion bushels, according to a Reuters News Service survey. USDA’s harvested acreage estimate was also below all trade estimates, while its yield estimate was toward the high end of expectations.

USDA cut its estimate of 2022 U.S. soybean production by 70 million bushels from November to 4.276 billion bushels, lowering harvested soybean acreage by 295,000 and lowering its U.S. soybean yield estimate by 0.7 bushels per acre to 49.5 bushels.

The USDA soybean crop estimate was below trade estimates that averaged 4.362 billion bushels in a range from 4.321-4.436 billion and its soybean yield estimate was also below all trade estimates.