USDA lowers 2018 wheat, soybean carryover from October

USDA lowers 2018 wheat, soybean carryover from October

USDA lowers 2018 wheat, soybean carryover from October

A new government forecast says Kansas is on track to harvest record crops of corn and soybeans.

"Corn is the centre of attention after the USDA report". If realized, corn production will be the second highest on record. The USDA is expecting the corn yield to reach a record 175.4 bushels per acre, more than three bushels higher than the October report.

Grain markets were dampened on Thursday by the U.S. Department of Agriculture's (USDA) monthly crop forecasts, which included a record forecast for this year's U.S. corn harvest yield.

The U.S.D.A. forecast corn carryover on September 1, 2018, at 2,487 million bus.

Yields are expected to average 197 bushels per acre, up 6 bushels per acre from the October forecast.

"We have surprisingly high USA corn yields, no one was expecting this", said one India-based agricultural commodities analyst of a USA crop report. "USDA also increased its forecast of Brazilian production, though it's still too early to be making real judgements there".

Brazil is expected to win a larger share of China's soybean imports in coming months, hitting USA exporters during peak marketing season for their most valuable farm product as the world grapples with a fifth consecutive bumper crop.

Today's close will say a lot about the tone of the soybean market, Knorr adds. November soybeans edged up 0.25 cent, or 0.03 percent, to 9.87 dollars per bushel over the week. Soybeans are down 0.2 percent after climbing 1.2 percent last week. Soft red winter wheat carryover was forecast at 222 million bus, up 1 million bus on a like increase in total supply. In turn, ending stocks are pushed higher from 2.340 billion to 2.487 billion bushels.

"Today's only bullish number came in wheat, where USDA raised its forecast of exports, cutting carryout 25 million bushels", Knorr says.

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