In a MarketSense blog post before the report, Arlan Suderman, senior market analyst for Water Street Solution, said yields were coming in at 10 percent to 30 percent below year-ago levels, with some of the worst corn yet to be harvested.
The USDA on Tuesday said 68 percent of the USA corn crop was in good to excellent condition, the same as the previous week.
The poll showed the agency cutting its US soybean production estimate to 3.869 billion bushels from 3.916 billion and lowering its average yield estimate to 46.4 bushels per acre from 46.9 bushels.
“Furthermore, initial harvest reports from the USA southern states suggest that yields are running below average”. Corn exports in July 2015 totaled 200 million bushels, the most for that month since 2009 and the second most since 1979.
-Rice production is seen at 189.5 million hundredweight (cwt), down 15.5 million cwt from August, on smaller yields and lower estimated harvested acreage. Record yield is forecast at 56 bushels per acre, up 2 bushels from a year ago.
CBOT November soybeans, the heaviest-traded soybean contract, added 1/4 cent, or 0.03%, to $8.83 a bushel. In parts of Illinois and Indiana, yields are down from last year’s record returns, they said.
Meanwhile, the USDA’s forecasts of USA soybean and corn crops on Friday will be closely watched by the market. 44-percent of the Wisconsin potatoes are harvested, ten days ahead of past year. The USDA, in the monthly reports, is projected to cut its corn and soybean production projections due to unfavorable weather, including hot and dry conditions in parts of the Midwest in August. Analysts forecast a 2015 crop of 3.841 billion bushels.
The USDA will update old crop corn and soybean consumption estimates and new crop supply and consumption estimates in the September WASDE report to be released on September 11. However, the pace of sales accelerated during the last two weeks of August, averaging 55 million bushels per week and well above the pace needed to reach the export forecast of 1.725 billion bushels.
Soybean ending stocks for the 2015/16 crop year were lowered by 20 million bushels to 450 million bushels, reflecting increased demand from crushers.