The USDA’s November World Agricultural Supply and Demand Estimates show increased corn and soybean production compared to the previous report. The corn outlook is for larger production, domestic use, exports, and ending stocks. Corn production is up 170 million bushels from last month on a 1.9-bushel increase in yield to 174.9 bushels an acre. Corn ending stocks are up 45 million bushels to 2.2 million. The season-average corn price is down 10 cents to $4.85 a bushel.
Betty Resnick, American Farm Bureau Federation Economist, says the WASDE report comes as harvest is wrapping up across the country. “As of November 5, which is our latest Crop Progress Report, corn is at 81 percent harvested nationwide and soybeans are at 91 percent harvested nationwide. So, we’re definitely wrapping up both of those and both are slightly above five-year averages. We’ve had pretty good harvest conditions. However, they have been battling some pretty wet conditions in Michigan, Ohio and Pennsylvania. They’re a bit behind schedule, but overall, we’ve made really good progress in harvest this year.”
Resnick says the WASDE report with increased yields reflects the resiliency of the corn crop this year. She says, “We were facing really potentially desperate situations earlier this summer with drought. They’ve revised yields back up 1.9 bushels to 174.9 bushels nationally, putting us back on track for a record corn crop, so corn’s gotten bigger, we’re going to see loosening supplies with that. And soybeans, similar story, they also saw a bump up in yield to 49.9 bushels an acre.”
The soybean outlook shows increased production and ending stocks. Soybean production is forecast at 4.13 billion bushels, a 25 million increase on higher yields. Ending stocks rose to 245 million bushels. The season-average soybean price is unchanged at $12.90 per bushel. The wheat outlook calls for larger supplies and decreased domestic use. Ending stocks are projected to rise by 14 million bushels to 684 million. The season-average farm price dropped a dime to $7.20.
With harvest nearing its end, Resnick says attention now turns to South America.
Resnick says, “As Northern Hemisphere harvest wraps up, of course, all eyes are starting to go south of the equator to see what’s going on in South America and as they start planting again, what that’s going to look like for global supply. But I really think one of the stories of this season in general is corn’s resilience.”