The increase in production forecasts for the United States lowers stock prices for soy and corn

Yesterday on the stock exchange in Chicago futures major crops declined by 1.5% to 2.8% on the data on the improvement of crop conditions in the U.S. and projected for the next 7-10 days for favorable weather. Many analysts increased their forecasts of production, primarily soybeans and corn in the United States, before the publication of the August USDA report, which can improve estimates of the average yield and gross harvest of soybeans and corn.

According to the weekly monitoring of the USDA, the number of soybeans in good or excellent condition for the week increased by 1% to 73%, whereas a year ago the figure was 54%. Crop growth is twice as fast, and as of August 3 pods of soybeans appeared on 59% of crops compared to 32% last year and 54% average for 5 years.

the Amount of corn in good or excellent condition remained at the level of last week, 72% compared to 57% last year. The development comes two times faster and on August 3 at the milk stage has passed 39% of crops compared to 20% last year and 33% in average of 5 years.

the Experts at Barchart increased the forecast of corn yield in the US is 1 bushel/acre to 174, 8 bushels/acre, while the USDA in July estimated it to 178,5 bushels/acre, while other analysts predict a 180-182,4 bushel/acre. According to analysts StoneX, the yield of corn in the U.S. in 2020 will be of 182, 4 bushels/acre and production 389,2 million tonnes compared to 380 million tonnes in the July USDA report.

Estimate soybean yields, experts Barchart increased to 49.2 bushels/acre, and experts StoneX – to 54.2 bushels/acre, which is significantly higher than the USDA projected in July 49.8 bushel/acre. Evaluation of soybean production experts StoneX increased to 122,5 million t compared to 112.5 million tonnes projected by USDA in July.

Yesterday on the stock exchange in Chicago December corn futures fell by 3.15 $/t to 126 $/tonne, and November soybeans – by 5.42 $/t 323,7 up to $/t

within the next 1-2 weeks in the corn belt of the U.S. will be 20-40 mm of rainfall, which will positively affect the condition of crops, although the temperature will exceed the norm and will reach 28-30 degrees.