September 12, 2013 — Drought and heat evidently are not causing a drop in corn production but definitely affecting soybeans. USDA’s Crop Report issued Thursday may have surprised a few who may have been expecting a lowering of yield prospects for corn. Instead, USDA went up almost a bushel an acre from last month to just over 155 bushels. Total production was forecast up 1 percent to a record 13.8 billion bushels, causing a ten-cent drop in average price prospects, now at $4.80 per bushel.
Soybeans are heading in the opposite direction with USDA taking 3 percent off its previous forecast. Production is now pegged at 3.1 billion bushels, up 4 percent from last year, and analysts added $1.15 to the price forecast, now at $12.50 per bushel.
A little less cotton than expected. USDA is looking at 12.9 million bales, down another 1 percent from the previous forecast and 26 percent below last year. But, because of slackening export demand, analysts have taken three cents off the price projection, now at 77 cents per pound.