The World Agriculture Supply and Demand (WASDE) report is out and bearing surprises for the markets.
For corn, production is forecast at 14.6 billion bushels and a record yield of 179.4 bushels per acre, more than four bushels higher than last months projection. However, the yield for Iowa is unchanged. Illinois, Indiana, Nebraska, Ohio, North Dakota, and South Dakota are forecast to have higher yields than a year ago.
Season average corn prices are down 20 cents at the mid point, at around $3.60 a bushel. The outlook for corn is larger supplies, greater feed and residual use, increased exports, and larger ending stocks.
Over in the soybeans, they are projected at 4.59 billion bushels with a yield forecast of 51.6 bushels per acre, about three bushels more than last month.
Soybean supplies are projected at a record 5 billion bushels, five percent more than last month. Average prices are forecast at $8.90 a bushel at the midpoint, down 35 cents from last month.
Market Analyst Alan Brugler with Brugler Marketing and Management says, "All the weekly changes are accountable by the USDA reports on Friday. USDA is showing a record U.S. soybean production up more than 200 million bushels. That bumped the ending stocks forecast to a really bearish 785 million bushels and of course the bean market didn't take it very well."
The outlook for soybeans is higher production, exports, crush, and stocks.