Prices for corn and soybeans at local elevators were up the limit after a USDA Crop Production Report which showed even smaller yields for corn than traders had expected.
Corn production is forecast at 12.7 billion bushels, down 4 percent from the
September forecast and down 3 percent from last year's record production of
13.1 billion bushels. Based on conditions as of October 1, yields are
expected to average 155.8 bushels per acre, down 6.7 bushels from the
previous month and 8.9 bushels below last year's record of 164.7 bushels.
Forecasted yields decreased from last month throughout much of the Corn Belt
and Tennessee Valley. Illinois showed the largest decline, down 14 bushels
per acre. Indiana and Iowa are both down 10 bushels from the previous month,
while Missouri and Nebraska declined 9 bushels per acre. Area harvested for
grain is forecast at 81.3 million acres, up less than 1 percent from the
September forecast. Acreage updates were made in several States based on
administrative data.
Soybean production is forecast at a record high 3.41 billion bushels, down
2 percent from September but 1 percent above last year. Based on September 1
conditions, yields are expected to average a record high 44.4 bushels per
acre, down 0.3 bushel from last month but up 0.4 bushel from last year.
Compared with last month, yields are forecast lower or unchanged in all
major-producing States except Illinois, Kentucky, Louisiana, Michigan, New
York, and Wisconsin. The largest decreases in yield from last month are
expected in North Carolina and Virginia, down 5 and 4 bushels, respectively.
If realized, the forecasted yields in Illinois, Louisiana, Nebraska, New
York, North Dakota, and Wisconsin will be record highs and the forecasted
yield in Minnesota will tie the previous record high. Area for harvest in the
United States is forecast at 76.8 million acres, down 1 percent from the
previous estimate but up 1 percent from 2009. Acreage updates were made in
several States based on administrative data.
