U.S. raises estimates for corn, soybean yields and inventories
CHICAGO — U.S. corn and soybean inventories will be bigger than previously thought as yields of both crops increased from earlier estimates, the government said on Wednesday.
Bigger-than-expected harvests give a slight boost to U.S. supplies at a time global grain inventories are low following Russia’s invasion of Ukraine. U.S. corn stocks will remain at a 10-year-low after dry weather hurt production
“Typically small crops get smaller but USDA went the other way and took the yield up on corn and soybeans,” said Don Roose, president of brokerage U.S. Commodities in Iowa. “Some of it was probably a good end to the harvest so field loss was probably less.”
Corn and soybean futures were weak at the Chicago Board of Trade.
The U.S. Department of Agriculture, in its monthly World Agricultural Supply and Demand Estimates report, pegged the U.S. corn crop at 13.930 billion bushels, based on an average yield of 172.3 bushels per acre. The soybean harvest was seen at 4.346 billion bushels, with a yield of 50.2 bushels per acre.
Last month, the agency estimated the corn crop at 13.895 billion bushels, with a yield of 171.9 bushels per acre, and the soybean crop at 4.313 billion bushels, with a yield of 49.8 bushels per acre.
Analysts polled by Reuters were expecting corn production of 13.887 billion bushels and a yield of 171.9 bushels per acre, and soybean production of 4.315 billion bushels and a yield of 49.8 bushels per acre.
U.S. end stocks of corn for the 2022/23 marketing year will be 1.182 billion bushels, the USDA said.
That compares with the government’s previous forecast for 1.172 billion bushels. Analysts had been expecting corn ending stocks of 1.207 billion bushels, according to the average of estimates given in a Reuters poll.
U.S. ending stocks of soybeans for the 2022/23 marketing year will be 220 billion bushels, according to the USDA. That compares with the government’s previous forecast for 200 billion bushels. Analysts had been expecting soy ending stocks of 212 billion bushels, according to a Reuters poll. (Reporting by Tom Polansek. Additional reporting by Karl Plume in Chicago.)
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