September 13, 2006

USDA makes more optimistic corn and soybean forecasts

       
Production of corn and soy in the US this year are likely to exceed earlier forecasts, USDA predicted Tuesday (Sep 12) in its monthly crop report.

The new report adjusted soybean production forecast upwards by 6 percent from last month's forecast to reach 3.1 billion bushels, up 165 million bushels.

Soy prices are expected to range between US$4.90 to US$5.90 dollars a bushel this year, down US$0.10 from a month ago, compared with last year's average of US$5.68.

Corn production is predicted at 11.1 billion bushels, up 138 million bushels, or 1.2 percent from last month's forecast.

Forecasted corn prices remain unchanged at US$2.15 to US$2.55 a bushel, in comparison to  US$1.99 last year.

If predictions hold true, the harvest this year would be the second-biggest on record for both crops, according to the report.