Soybean futures soared higher Thursday (Oct.12) after the United States Department of Agriculture surprised the trade with the October Crop Production report.
The USDA estimated the soybean crop at a record 4.43 billion bushels. Based on Oct. 1 conditions, yields are expected to average 49.5 bushels per acre, down 0.4 bushels from September’s report and down 2.5 from last year.
The number was also below the average trade estimate. The nearby November 2017 future was up more than 25 cents per bushel shortly after the report was released.
Support also came from the USDA’s World Agricultural Supply and Demand Estimates report. Of note, ending stocks were trimmed by 45 million to 430 million bushels.
Corn production is forecast at 14.3 billion bushels, down six per cent from last year but one per cent higher than the September estimate.
The average yield is pegged at 171.8 bushels per acre, up 1.9 bushels from the September forecast but down 2.8 bushels from last year.
If realized, the USDA notes that this will be the second highest yield and production on record for the U.S.