WASDE: US corn production up, South America unchanged

Corn and soybeans

Corn and soybeans

The U.S. Agriculture Department on Friday boosted its estimate of domestic corn production due to a record yield that stemmed from bumper harvests in major growing states such as IL as well as some of the smaller production areas.

Soybean futures that hit a four-month low earlier in the session rebounded into positive territory. USDA said that both corn and soybean stocks as of December 1 were the highest on record.

The U.S. corn production is estimated at 14.6 billion bushels, up slightly from the November forecast and down four percent from the revised 2016 estimate. Soybean ending stocks were raised too, largely due to a cut in the export forecast for the oilseed. US soybean production is forecast at 4.39 billion bushels, down one percent from the November forecast and up two percent from previous year. The increased production forecast is the result of increased yield projections, with the national average now projected at 176.6 bushels per acre.

The estimate for food, seed and industrial use is raised 10 million bushels, reflecting an estimated amount of corn used for glucose and dextrose during September-November that was above expectations.

USDA said soybean harvested acreage was 89.522 million and corn harvested acreage was 82.703 million. The average yield was cut to 49.1 bushels per acre from 49.5 bushels per acre.

Grains prices at 0327 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 433.50 0.25 +0.06% -0.17% 426.61 58 CBOT corn 348.75 0.00 +0.00% -0.07% 350.93 40 CBOT soy 950.00 0.00 +0.00% -0.52% 977.75 27 CBOT rice 11.75 $0.02 +0.17% -1.30% $12.10 34 WTI crude 63.63 -$0.17 -0.27% +0.09% $59.25 78 Currencies Euro/dlr $1.205 $0.002 +0.13% +0.85% USD/AUD 0.7878 -0.001 -0.15% +0.46%.

Ending stocks were reported at 2.477 from 2.437 billion. USDA boosted the domestic soybean ending stocks forecast to 470 million.

On-farm storage in 2017 grew by about 65 million bushels to 13.45 billion bushels, with increases in Iowa, Missouri and Arkansas, USDA said in the annual report.

Additionally, USDA in its daily export sales reporting system announced a sale of 320,000 tonnes of US corn to unknown destinations - the largest one-day sale of corn since November.