USDA forecasts record-high soybean crop

Washington-The U.S. Department of Agriculture updated its corn production estimates on Oct. 8, and industry sources said the new figures added fuel to the fire driving up fertilizer prices. Corn production is forecast at 12.7 billion bushels, down 4 percent from the September forecast and down 3.4 percent from last year’s record production of 13.1 billion bushels, according to the latest Crop Production report by USDA’s National Agricultural Statistics Service (NASS). Based on Oct. 1 conditions, corn yields are expected to average 155.8 bushels/acre, down 6.7 bushels from the September forecast and down 8.9 bushels from 2009’s 164.7 bu/a yield, but still the third highest yield on record. Corn growers are expected to harvest 81.3 million acres, up 0.3 percent from the September forecast. Forecasted yields decreased from last month throughout much of the Cornbelt and Tennessee Valley, with Illinois showing the largest decline of 14 bu/a, Indiana and Iowa dropping 10 bu/a, and Missouri and Nebraska declining 9 bu/a from last month. On the heels of a warm growing season, U.S. soybean production is forecast at a record-high 3.41 billion bushels, down 2 percent from the September forecast but up 1 percent from last year’s record crop. Soybean yields are expected to average a record high 44.4 bu/a, down 0.4 bu/a from last month but up 0.4 bu/a from 2009. Compared with last month, soybean yields are forecast lower or unchanged in all major producing states except Illinois, Kentucky, Louisiana, Michigan, New York, and Wisconsin, with record-high yields expected in Illinois, Louisiana, Nebraska, New York, North Dakota, and Wisconsin. Soybean growers are expected to harvest a record-high 76.8 million acres, down 1 percent from the September estimate, but up 0.6 percent from last year’s acreage. All cotton production is forecast at 18.9 million bales, up 55 percent from last year. This is the first increase in cotton production in the U.S. since 2005. The cotton yield is forecast at 841 pounds/acre, up 64 pounds from last year. If realized, this will be the third largest yield on record.