USDA cuts 2020 corn production projection
The USDA has slashed its’ projection for 2020 corn production and raised the outlook for soybeans slightly. Those changes follow the June 30th planted area totals, with showed lower than expected corn acreage against an increase for soybeans.
Corn production is pegged at 15 billion bushels, down 995 million from the June supply and demand report, pulling the new crop ending stocks guess down 855 million bushels from last month to a still bearish 2.648 billion bushels. The average yield estimate for corn was unchanged at 178.5 bushels per acre, compared to 167.4 a year ago, but that could also be lowered in coming months, depending on development weather, and the USDA raised old crop ending stocks 145 million bushels to 2.248 billion because of slower feed and fuel use.
Soybean production is now seen at 4.135 billion bushels, 10 million above a month ago, which along with higher old crop ending stocks, up 35 million bushels to 620 million, pushed the new crop ending stocks to 425 million bushels. This year’s average yield guess was unchanged on the month at 49.8 bushels per acre, compared to 47.4 the previous marketing year. The USDA did raise the 2020/21 crush demand estimate.
New crop wheat ending stocks are expected to be 942 million bushels, compared to 925 million a month ago, as a smaller production estimate was mostly canceled out by higher beginning stocks and a lower feed use projection.
The 2020/21 marketing year for wheat started June 1st, while 2019/20 runs through the end of August for corn and soybeans.
The USDA’s next set of supply, demand, and production numbers is out August 12th.