July WASDE projecting higher corn production but a decrease in soybean output

HOUSTON (ICIS)–The US Department of Agriculture (USDA) is projecting higher corn production but a decrease in soybean output according to the July World Agricultural Supply and Demand Estimate (WASDE) report.

In the monthly update corn production for 2024-2025 is forecast up by 240 million bushels on greater planted and harvested area from the June Acreage report, with yield unchanged at 181.0 bushels per acre.

The current outlook is also calling for larger supplies, greater domestic use and exports, and slightly lower ending stocks.

Corn beginning stocks are lowered 145 million bushels, mostly reflecting a greater use forecast with exports raised by 75 million bushels based on current outstanding sales and shipments to date.

Feed and residual use is up 75 million bushels based on indicated disappearance in the June Grain Stocks report. Total use has also been lifted 100 million bushels with increases to both feed and residual use and exports based on larger supplies and lower expected prices.

With use rising slightly more than supply, ending stocks are now being projected down by 5 million bushels.

The July WASDE revealed that the season-average farm price received by producers is lowered by 10 cents to stand at $4.30 per bushel.

For soybeans production is projected at 4.4 billion bushels, which is a decrease of 15 million bushels based on expected lower harvested area.

Harvested area, forecast at 85.3 million acres in the June Acreage report, is now down 300,000 acres from last month with the yield forecast unchanged at 52.0 bushels per acre.

With slightly lower beginning stocks, reduced production and unchanged use, ending stocks for 2024-2025 are projected at 435 million bushels, which is a decrease of 20 million bushels from the June WASDE.

The update showed that the season-average soybean price is forecast at $11.10 per bushel, down 10 cents from last month.

The next WASDE report will be released on 12 August.