USDA cuts corn, soybean crops

Grain futures are mixed this morning. Though USDA cut its forecast of corn and soybean production in Thursday morning’s World Agricultural Supply and Demand Estimates (WASDE) report, it projected tighter corn carryout but rising soybean inventories. Corn posted modest gains while soybeans sold off as a result.  “USDA’s attempt to update the supply and demand situation today was muddied by uncertainty over what’s going on in China,” notes Farm Futures senior grain market analyst Bryce Knorr. “While that was not surprising for soybeans, the confusion extended to corn as well.”USDA lowered its assessment for U.S. corn production and noted smaller ending stocks, despite also noting lower feed and residual use and lower exports. Production is now estimated at 14.626 billion bushels, trending 152 million bushels lower than October estimates. Supply fell more than use, sending corn ending stocks down 77 million bushels.USDA’s latest per-acre yield estimates for the 2018 corn crop moved from 180.7 bushels per acre in October down to 178.9 bpa. Analysts anticipated a larger production of about 14.729 billion bushels on average yields of 180.1 bpa. Farm Futures, which regularly participates in these analyst surveys, contributed estimates of 14.732 billion bushels on average yields of 180.0 bpa.