August 13, 2020

 

USDA: US farmers to harvest second largest soybean crop

 


The United States Department of Agriculture (USDA) said US farmers are set to reap their second biggest soybean harvest as a result of good summer weather, Reuters reported.

 

Harvest projections, which also showed record high average yields for soybeans and corn surpassed trade expectations.

 

The USDA said it increased the ending stocks view for soybeans and corn, even though it raised its export projections for soybeans and corn by 75 million bushels after China boosted its purchases of the US commodities.

 

Jack Scoville, Price Future Groups analyst in Chicago said it will be difficult to move commodities to affect impending stocks as there is plenty of stock, even though there is higher demand from China and other countries.

 

The USDA pegged corn production at 15.278 billion bushels based on a 181.8 bushels per acre average yield. Additionally, the USDA projected 4.425 billion bushels for soybean production, based on a 53.5 bushels per acre average yield.

 

After the USDA data was released however, futures prices were not affected much.

 

The USDA said its estimates for soybeans and corn productions are based on August 1 conditions. It does not include the impact of the recent Derecho storm that has affected about 10 million acres in Iowa.

 

Don Roose of USCommodities in West Des Moines, Iowa said this year's Iowa corn harvest is still expected to be big even after taking into account possible crop damage.

 

Corn end stocks were projected to be at 2.756 billion bushels, higher than the 2.648 billion predicted in July and the biggest since 1988. Soybean stocks will hit 610 million bushels, an increase of 185 million bushels compared to the July forecast.

 

-      Reuters

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