August WASDE forecasting increased US corn and soybean production

HOUSTON (ICIS)–The US Department of Agriculture (USDA) is forecasting increased corn and soybean production, according to the August World Agricultural Supply and Demand Estimate (WASDE) report.

Corn production is being calculated at 15.1 billion bushels, up 47 million bushels from the July report, while soybeans are projected to be 4.6 billion bushels, up 154 million bushels.

Looking further at the domestic corn crop, the USDA said the monthly outlook is for larger supplies, lower domestic use, greater exports and smaller ending stocks.

Projected beginning stocks are now 10 million bushels lower based on a slightly higher use forecast for 2023-2024, with higher exports partly offset by reductions in corn used for glucose, dextrose and starch.

Corn production is forecasted at 15.1 billion bushels, up 47 million bushels from last month with the agency saying a 700,000 acre decline in harvested area is fully offset by an increase in yield.

The season’s first survey-based corn yield forecast is at a record 183.1 bushels per acre, which is 2.1 bushels higher than last month’s projection.

Among the major producing states there are indications that yields will rise year on year in Illinois, Indiana, Iowa, Missouri, Nebraska and South Dakota, with yields in Ohio forecasted to be below a year ago.

Total US corn use is forecast 60 million bushels higher to now stand at 15.0 billion bushels.

Exports for 2024-2025 are being lifted by 75 million bushels to a total of 2.3 billion bushels, which the USDA said reflects US export competitiveness and relatively low world market prices.

With supply rising less than use, ending stocks are now calculated to be lower by 24 million bushels to 2.1 billion bushels.

The August WASDE said the season-average farm price received by producers is lowered by 10 cents to stand at $4.20 per bushel.

For soybeans, the USDA said the outlook includes higher production, exports and ending stocks.

Currently production is being forecasted at 4.6 billion bushels, which is an increase of 154 million bushels and is based on higher area and yield.

The harvested area is being calculated at 86.3 million acres, which is 1 million acres higher from the July WASDE.

The first survey-based soybean yield forecast is at 53.2 bushels per acre, which is up 1.2 bushels from last month’s projection.

Soybean supplies are being estimated at 4.9 billion bushels, which is 11% higher year on year.

The USDA said exports are up 25 million bushels on higher supplies and crush unchanged, with ending stocks now expected to be 560 million bushels, up 125 million bushels from last month.

The season-average soybean price is forecast at $10.80 per bushel, down 30 cents from July.

The next WASDE report will be released on 12 September.