USDA dropped corn production to 10.77 B/bu., the lowest production levels since 2006. Based on crop conditions on Aug. 1, USDA estimated yield at 123.4 bushels per acre, which is 23.8 bushels below 2011 and the lowest U.S. corn yield since the early days of the biotech production boom, DTN reported Friday morning.
USDA's estimate falls slightly lower than the average market estimate which was pegged at 126.2 bushels per acre. A Reuters poll of a few industry analysts estimated a national average yield of 127.3 bpa. USDA estimated the average yield at 123.4 bpa and projects 2013 ending stocks will be 650 M/bu., Brugler Marketing said.
Despite the low corn projections, USDA actually increased corn ending stocks for the 2011-12 crop year to 1.021 B/bu. from 903 mb while trimming corn demand by 1.595 B/bu., DTN said.
Production for soybeans is estimated at 2.69 B/bu., down 12% from last year. USDA pegs the yield at 36.1 bpa, which is also slightly below the average trade estimate and 5.4 bushels below last year. If realized, the average yield will be the lowest since 2003, DTN said.
As seen on marketwatchonline.com
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