Corn, soybean and wheat prices plummeted on Thursday as the crop production estimates from the United States Department of Agriculture were higher than expectations.
In its August 10 report, the USDA forecast corn production at 14.2 billion bushels. The national average corn yield was trimmed to 169.5 bushels per acre, down slightly from the July estimate of 170.7. If realized, this will be the third highest yield and production on record for the United States. The production estimate is down seven per cent from last year.
U.S. soybean production is forecast at 4.38 billion bushels, up two per cent from last year. Based on Aug. 1 conditions, the USDA expects yields to average 49.4 bushels per acre. The estimate is slightly higher than the July forecast of 48.
All wheat production, at 1.74 billion bushels, is down one per cent from the
July forecast and down 25 per cent from 2016. The U.S. yield is forecast at 45.6 bushels per acre, down 0.6 bushel from last month and down 7 bushels from last year.
Winter wheat production is forecast at 1.29 billion bushels, up one per cent from the July 1 forecast but down 23 per cent from 2016. The U.S. yield is forecast at 50 bushels per acre, up 0.3 bushel from last month but down 5.3 bushels from last year.
After the report was released on Thursday, old and new crop corn futures were down more than 15 cents. Soybean futures plunged more than 30 cents. And the September 17 wheat future in Chicago closed 19 cents lower.