An already tight grain and oilseed market got even tighter today as the U.S. Department of Agriculture's National Agricultural Statistics Service (NASS) released its August crop production and supply and demand estimates.
USDA revised its estimate of corn yield to 153 bushels per acre, down from a forecast of 158.7 bushels released in the July report. It said the figure would still mark the fourth highest yield on record, with a total forecasted production of 12.9 billion bushels, up 4 percent from 2010's final production.
"It was a very aggressive revision in corn yield," said Ohio State University Extension economist Matt Roberts.
Hot, dry weather played a significant role in developing a crop now presumed to be much smaller than market analysts had anticipated. The average of pre-report private estimates for corn yield was 155 bushels per acre.
As corn production tightens, prices are expected to rise and, accordingly, consumption potentially curtailed.
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Commodity reports and news related to the marketing of produce and other goods.