Coming up on Monday, the U.S. Department of Agriculture will release its Supply and Demand and Crop Production reports. Heading into those, Allendale, Inc. has the following expectations:
Corn – Allendale’s nationwide survey lowered yields to 147.7 from USDA’s current 153.0. This is the lowest yield since 2003’s 142.2. It represents a 3.5{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} reduction from August. This is the largest September decline since 1995’s 3.6{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} drop. This reduces production by 448 million bushels. Of that, sharply reduced demand will offset 310 million bushels.
Soybeans – Allendale’s nationwide survey lowered yields to 40.7 from USDA’s current 41.4. This is the lowest yield since 2008’s 39.7. It represents a 1.7{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} reduction from August. This number is the largest September decline since 2003’s 7.6{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} drop. Production has been reduced by 49 million bushels. Of that, 21 million will be offset by falling demand.
Wheat – Allendale is using a wheat yield of 43.7 bu/acre. This reduces production by 70 million bushels. However, we contend USDA’s demand estimates are optimistic.
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Source: Allendale, Inc.
Posted by Haylie Shipp
