Purdue panel discusses the USDA crop report at the Indiana State Fair


Purdue panel discusses the USDA crop report at the Indiana State Fair

The corn market reacted positively to USDA’s corn production estimates. 

Purdue University Ag Economist Jim Mintert says the report was a bit of a surprise when comparing USDA estimates to trade.

“I think it’s going to be very interesting to see how that plays out with respect to the actual production level, and then going forward we continue to be very interested with what takes place on the export side,” he says. “If you look at the dominance of China in the exports markets, that continues to be a big factor going forward and that will be a very important determinant of what takes place with respect to prices into the fall and winter.”

He says it suggests continued price strength because of a “tight carryover” situation. 

“We still have a very tight carryover situation in both corn and soybeans,” he says. “Soybeans are projected to carryover out of the 2021 crop year into the 2022 crop year at about 3.5 percent and on the corn side, about 8.5 percent of total usage. Those are tight numbers by historical standards.”

A panel of Purdue Extension experts and the USDA Indiana statistician discussed the report today at the Indiana State Fair. Jason Henderson, director of Purdue Extension moderated the discussion. Panelists included Mingert; Nathanial Warenski, state statistician of the USDA, NASS, Indiana field office; Dan Quinn, extension corn specialist; Shaun Casteel, extension soybean and small grains specialist; Beth Hall, Indiana Climatologist.