September 30, 2014

USDA reduces corn yield projections

The dry weather impacting much of the Corn Belt led to USDA reducing their estimated corn yield. USDA Chief Economist Joe Glabuer stated this shouldn’t come as a big surprise. On June 1st, 13% of the Corn Belt was in drought conditions compared to 60% now.

USDA reduced the yield about 12% from their earlier estimate. Glabuer says they reduced the corn yield to 146 bushels an acre.

Glabuer says it also should come at no surprise this year will be a weather market and the extended weather forecast is not favorable for crop development.

USDA adjusted their price estimates for July, up about $1.30 at the mid-point which is around $5.90.