USDA Forecasts Less US Corn, Soybeans

Matt Hopkins Posted by Matt Hopkins|11 November 2008

The Associated Press reports that the US Department of Agriculture (USDA) has lowered its forecasts for this year’s US corn and soybean harvests. Corn production – of which 55% has been harvested – is now expected to come in at 12.02 billion bushels, down from last month’s revised estimate of 12.03 billion bushels and below analysts’ estimates of 12.08 billion bushels. Corn yield per acre is expected to come in at 153.8 bushels, down from last month’s estimate of 153.9 bushels. This year’s corn crop is still expected to be the second largest on record, although USDA lowered its estimate of the average price of corn for the year to a range of US $4 to $4.80 per bushel, down from $4.25 to $5.25 per bushel last month.

The soybean harvest is forecast to be 2.92 billion bushels, down from 2.94 billion, according to the USDA’s November report. The new projection matched analysts’ estimates. Soybean yield per acre is forecast to be 39.3 bushels, down from 39.5 last month. Though estimates have fallen, the soybean crop is expected to be the fourth largest ever. At the time of the new estimates, 86% of this year’s soybeans have been harvested.