USDA Shocking Report
Friday morning at 11:00 the USDA released the August Supply Demand Report and it was a shocker! The corn numbers were not quite as bearish as soybeans. The USDA raised the national corn yield to 178.4 bushel an acre with the average trade guess at 176.3. In last months estimate the USDA was at 174.6 bushel an acre. The corn crop this year is projected to be at 14.586 billion bushel. Carryover for old crop was about unchanged at 2.027 billion bushel. New crop carryover even with the yield increase drops to 1.63 billion bushel.
Soybeans dropped 38 to 42 cents a bushel Friday when the USDA raised the national average yield to 51.6 bushel an acre. In the July report the USDA was at 48.5 bushel an acre. The USDA actually dropped old crop carryover to 430 million bushel. Last month it was at 465 million. However, the really bearish number was new crop carryover, it increases to 785 million bushel. Needless to say farmers are not very happy with the yield estimates and question that the corn and soybean yields will be that high.