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Prices sink after USDA raises corn, soybean yield estimates

Corn and soybean prices sunk Friday after the USDA raised its production estimates for both crops.

Iowa State University extension economist Chad Hart says the trade anticipated an uptick in yield.

“But not nearly as much as they did.”

In its first survey-based forecast of the year, USDA increased the corn yield estimate to what would be a record 178.4 bushels per acre.  Soybean yields are seen at 51.6 bpa.

“You’re talking about adding another 350 million bushels to the corn side of the ledger (and) nearly 275 million bushels to the soybean side.”

Hart tells Brownfield the high projections aren’t that surprising given how strong crop condition ratings have been this growing season.

December corn futures closed 11 cents lower Friday at $3.71 ¾.  November soybeans fell more than 42 cents to $8.61 ¾.