USDA lowered the projected U.S. corn yield to 146 bushels/acres in its July 11 World Agricultural Supply and Demand Estimates (WASDE) report, down 20 bushels from last month, reflecting the rapid decline in crop conditions since early June and the latest weather data. The season average 2012/13 farm price for corn is projected at $5.40-$6.40 per bushel, up sharply from $4.20-$5.00 per bushel in June.
“Persistent and extreme June dryness across the central and eastern Corn Belt and extreme late June and early July heat from the central Plains to the Ohio River Valley have substantially lowered yield prospects across most of the major growing region,” the report said. Harvested area was also reduced slightly based on USDA’s June 29 Acreage report.
The U.S. soybean crop was also feeling the pinch from drought, USDA said. Soybean production is projected at 3.050 billion bushels, down 155 million as increased harvested area is more than offset by reduced yields. The soybean yield is projected at 40.5 bushels/acre, down 3.4 bushels from last month. “The drop reflects sharply declining crop conditions resulting from limited rainfall since early April coupled with excessive heat across much of the producing area in late June and early July,” USDA said.
The U.S. season average soybean price is projected at $13.00-$15.00 per bushel, up $1.00 on both ends of the range from last month.