Stu Ellis With WCIA 3 Reports on the August Crop Report
The Department of Agriculture has made its first estimate of the actual size of this year’s corn and soybean crops. Stu Ellis has this report on the August 1st Crop Report…
The USDA’s National Ag Statistics Service served up a roundhouse in the breadbasket Thursday for farmers and grain marketers who were expecting a five bushel cut in the national corn yield from earlier estimates.
That did not happen and the corn market dropped 12-13 cents yesterday. Although unofficial yield estimates were in the neighborhood of 165 bushels, the USDA only nudged its projection down from a July estimate of 170 and a half to the August 1st official estimate of 169 and a half. While that was a disappointment to many, the USDA is not known for major cuts in production estimates.
One significant issue was that the August estimate is based on ear counts per acre. USDA’s crop enumerators said the yield data indicated the 5th highest number of ears on record for the 10 major states.
A second significant issue was that July weather stress on the crop was not taken into consideration, because the field sampling occurred some of it before the end of the month.
The outcome was an initial projection of a 14—point 2 billion bushel crop, and while that is 7% less than last year, it was about a billion more bushels than the market expected.
In soybean fields USDA calculated the yield at 49 point 4 bushels per acre, projecting a nearly four point 4 billion bushel crop, up 2% from last year. But the USDA projections resulted in a significant drop in the market, down about 30 cents for soybeans.
One trader said after the USDA numbers were released – those pre-report estimates only set us up for a major disappointment. That was certainly true.
That is our report from the farm this morning, I’m Stu Ellis for WCIA3 your local news leader.
S2LS Ag Communications
Cornbelt Update Weekly Newsletter
WAND TV AgriBusiness Today
Herald & Review weekly columnist
Farmgate commentator on Miller Media Radio
Complete audio and video production services