USDA is forecasting the third largest corn crop on record and the second largest soybean crop in a new planted acreage update released today.
U.S. growers are forecast to produce 13.7 billion bushels of corn this year, according to the report from USDA’s National Agricultural Statistics Service (NASS). That is actually a four percent decrease from last year’s production, but if realized will be the third largest production on record. The numbers are up 156 million from the July projection, with the season’s first survey-based corn yield forecast at 168.8 bushels per acre, 2.0 bushels higher than last month’s projection.
Overall, the report says that growers nationwide planted 88.9 million acres to corn, unchanged from the June estimate. As of August 2, 70 percent of U.S. corn was reported to be in good or excellent condition, three percentage points below the same time last year.
U.S. soybean growers are now forecast produce the second largest crop on record although one percent less than last year. NASS forecasts U.S. soybean production of 3.92 billion bushels with a yield of 46.9 bushels per acre, which would also be the second largest on record, down 0.9 bushels per acre from the record set in 2014. Growers are expected to set new record-highs in Arkansas, Georgia, Kentucky, Michigan, Minnesota, Nebraska, South Dakota, and Virginia.
The new World Agricultural Supply Demand Estimate also released today increased usage of corn for ethanol from 5.225 million bushels to 5.250 million and lowered the average corn price estimate for the year five cents to $3.35-3.95 per bushel. “With the lower prices, domestic demand should kick up,” said analyst Jack Scoville of the PRICE Futures Group during the Minneapolis Grain Exchange call on the report. “Which will make ethanol that much more attractive in the corn … definitely should help biofuels consumption.”MGEX Crop Call with Jack Scoville