The U.S. Department of Agriculture (USDA) released its latest crop production report on Friday, revealing both positive and negative news for corn and soybean markets. While the USDA raised its estimate for 2023/24 corn production to 15.1 billion bushels, exceeding analyst expectations, it also significantly cut its forecast for ending stocks of both corn and soybeans, pushing prices higher.
The USDA expects the 2024/25 corn crop to be the third-largest in U.S. history. However, ending stocks for both the current and upcoming crop years are now projected to be lower than previously estimated. This has sparked concerns about tighter supply, especially for old crop corn.
Advertisement
Hey there! Want to support us? If you’re planning on shopping on Amazon, please consider using amzn.to/4bPDFNL. It doesn’t cost you anything extra, but helps us keep the lights on. Thanks for your support!
Despite the increased production estimates, analysts are focusing on the next six weeks as crucial for the corn crop’s yield due to the pollination period. The USDA’s revised forecasts could significantly impact future prices for both corn and soybeans.