September 13, 2010

USDA cuts US corn yield forecast by 2.5 bushels

The USDA reduced on Friday (Sept 10) its yield forecast for US corn this year to 162.5 bushels per acre from its August estimate of 165 bushels following last month's hot, dry weather.

Traders and analysts had expected the department to peg the average corn yield at 162.9 bushels.

USDA, in its September supply-demand report, reduced its forecast for US corn production this year to 13.16 billion bushels, down from its August estimate of 13.365 billion. The Reuters poll had pegged production at 13.2 billion bushels.

For soy, USDA raised its estimate of the average US yield to 44.7 bushels per acre, from 44 in August. The figure was above a range of analyst estimates for 43 to 44.2 bushels per acre.

The agency raised its 2010 US soy production forecast to 3.483 billion bushels from 3.433 billion last month.

The department reduced its estimate of world wheat production to 643.01 million tonnes from its August estimate of 645.73 million tonnes amid a severe drought in Russia, the world's top three wheat exporter last year.

The Reuters Poll of traders and analysts pegged world wheat production at 641.44 million tonnes.