USDA surprised many with the crop production forecast out this month estimating a two percent increase from last month for corn.
Based on conditions as of November 1, yields are expected to average 175.4 bushels per acre, up 3.6 bushels from the October forecast and up 0.8 bushel from 2016. If realized, this will be the highest yield on record for the United States.
“It’s a major surprise for the trade to see a production increase this large for corn,” said Brian Hoops, Midwest Market Solutions, during the MGEX crop commentary call. “It really is hard to make sense that this yield number would be justified by crop ratings, which all summer were near 10 year low ratings.”
Listen to Hoops’ corn commentary here: Brian Hoops, Midwest Market Solutions
“In 2005, the year the RFS was enacted, corn yield stood at 147.9 bushels per acre. This year’s record of 175.4 bu/ac reflects an approximate 20% increase in yield in just over 10 years,” said Renewable Fuels Association President and CEO Bob Dinneen. “So, congratulations to America’s corn farmers who have worked so hard to achieve this record yield,” he added.