CattleFax Closing Bell: Record Corn and Soybean Yield – September 21, 2018

CattleFax Closing Bell: Record Corn and Soybean Yield – September 21, 2018


Hello, I’m Troy Bockelmann with the CattleFax Closing Bell. Today’s Closing Bell is sponsored by IMI Global third-party
verification and value-added services you can trust. While there was a wet
wintry spring in much of the major crop growing regions that resulted in delayed
planting for some regions. Mother nature provided excellent growing conditions
for much of the U.S. and this is evident in the estimated yields for both corn
and soybeans. The September USDA WASDE was released and a record corn yield in
August was estimated larger. The USDA estimates that the 2018-19 crop year
corn yield will be a hundred and eighty one point three bushels an acre up from
a hundred and seventy eight point four bushels an acre in August. This resulted
in production of fourteen point eight two seven billion bushels up from fourteen
point six billion bushels last year. With the supply increase, usage was adjusted
higher for exports, ethanol and feed and residual. As demand increased faster than the supply, the market is working through the carryover supplies. Ending stocks
for U.S. corn are estimated at one point seven seven billion bushels, down from
two billion bushels a year ago. As a result, stocks to use for the current
market year are estimated at eleven point seven percent, down from thirteen
point four percent last year. Soybeans also saw an increase in yield from
August to September, as the USDA estimated a record soybean yield of
fifty two point eight bushels an acre in September. Soybean production is
estimated three hundred million bushels higher than last year at four point six
nine billion bushels. With the increased corn yield, demand was increased to
offset the increased production. This was not the case in soybeans as trade
tensions in China resulted in estimated exports decrease in seventy million
bushels from a year ago and only a fifteen million bushel increase in
soybean crushing. As a result, there’s record ending stocks, estimated eight
hundred and forty five million bushels, over double last year’s carryout. Stocks
to use for U.S. soybeans are estimated at 19.8%, up from 9.1% last year and the largest since 1986. This increased soybean supply as well as trade tensions with China will likely keep soybean prices
subdued into 2019. Thanks for watching and remember visit CattleFax.com to
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