The monthly World Agriculture Supply and Demand report released by the Department of Agriculture lowered corn and soybean production.
Markets responded closing six to seven cents higher for corn, and soybeans up 26-30 cents Thursday. This month’s corn outlook is for reduced production, lower corn used for ethanol, and slightly higher ending stocks.
Corn production is forecast at 13.799 billion bushels, down 102 million from last month on a lower yield forecast, and supplies were lowered, as well.
The season-average corn price received by producers is unchanged at $3.60 per bushel. USDA projects soybean production at 3.6 billion bushels, down 47 million on a lower yield forecast of 47.9 bushels per acre, and soybean supplies are down two percent.
Ending stocks are projected at 640 million bushels, down 115 million from last month. The season-average soybean price is forecast at $8.50 per bushel, up ten cents.
The wheat supply and demand outlook is unchanged this month. The projected season-average farm price is $4.80 per bushel, down $0.20.