A new report by the USDA may reduce production forecasts for soybeans and corn in the United States
the Market looks forward to a new USDA report with estimates of production of soybeans and corn in the United States, which will significantly affect world prices.
Warm and dry weather in September contributes to the development of late crops of soybeans and corn in the USA that need more heat to Mature. If in October-November will not be the cold snap with frosts, the yield is not significantly reduced.
in anticipation of the release of the USDA report of the analytical Agency has published its own forecasts of acreage for harvest, yield and production. Experts expect that the new USDA report may slightly lower the forecast of production of soybeans and corn in the United States for slightly lower yields and less area to clean.
On the average, the area of harvesting corn in the United States amount of 81.3 million acres compared to USDA projected in August 82 million acres. The average yield amount was 167.2 bushels/acre, and the gross yield of 13.6 billion bushels or 345,5 million tonnes, while the USDA in August estimated to 169,5 bushel/acre and 353,1 million tons, respectively.
the area of cleaning soybeans in the U.S. of 75,8 million acres, the yield is 47.2 bushels/acre, the gross yield – 3.58 bln bushels or holding 97.46 million tonnes, while the USDA in August estimated the area at 75.9 million acres and yield at 48.5 bushels/acre, total yield, in million tons 100,26
in addition, updated production forecasts a tense situation with Achs in Asia, which leads to a reduction in the consumption of soybeans and corn, and affects the level of world consumption.
Reduction of production and increase domestic consumption of corn in the U.S. will reduce ending stocks in 2019/20 MG by 5.23 million tonnes to 50.1 million tonnes.
in addition, production volumes of soybeans and corn in the United States experts of the USDA's new report will take into account the increase in harvest in Ukraine, Brazil and Argentina, as well as reducing consumption in China, so it probably balances September will be neutral for the markets of soybeans and corn.