The U.S. soybean hit parade, with record production in 2016, 2017, and 2018, will continue this year with the largest crop ever, the government forecast on Tuesday with the harvest in full swing. A late-summer surge in likely yields per acre prompted the USDA to say the crop will be 2 percent larger than its previous estimate.
U.S. farmers will reap two of their largest-ever corn and soybean crops, the first step to assuring an abundant food supply, the government said on Thursday, despite drought damage in the northern Plains and upper Midwest. The wheat crop, meanwhile, will be the smallest in 19 years.
The United States is headed for its largest corn harvest ever and its third-largest soybean crop, based on the USDA's annual Acreage report, issued on Wednesday. The mammoth crops would be ready for harvest late this summer, replenishing U.S. grain inventories that are being drained by robust demand at home and abroad.
Warm and dry weather brought "widespread worsening of drought and dryness" to the upper Midwest in the past week, particularly in Iowa and Wisconsin, said the Drought Monitor.
After buying huge amounts of the 2020 U.S. corn crop, China bought a total of 3.74 million tonnes (147 million bushels) of American corn last week, all of it for delivery after this year's crop is mature, reported the USDA. "New crop" corn was 80 cents to $1 a bushel lower in price at the Chicago futures markets than the 2020 crop.
U.S. farmers will reap two of their largest corn and soybean crops ever and sell them for the highest average prices since the commodity boom ended several years ago, said the government Wednesday in its first projections of the fall harvest. The USDA also said that global soybean king Brazil would increase its share of the world market at the expense of U.S. exports.
Importers are adding to the mountain of U.S. corn already headed to China with the purchase of 1.36 million tonnes of corn for delivery in the marketing year that opens Sept. 1. The purchase, reported by private exporters to USDA, was worth $400 million at current futures prices.
Large swaths of Iowa, Wisconsin, Illinois, Indiana, and Ohio are abnormally dry and most of Michigan is in moderate drought due to limited spring precipitation, said the weekly Drought Monitor on Thursday. Arid conditions covered 48 percent of the Midwest, the heart of U.S. corn and soybean production.
U.S. farmers will plant less corn and soybean land than expected this year, despite a surge in commodity prices, suggesting that tighter grain supplies will persist into 2022, said the USDA on Wednesday. Although with normal weather and yields, the corn and soybean harvests could be the second largest ever, they will not be quite as large as projected by traders and the government.
In a four-day shopping spree, importers bought 3.876 million tonnes of U.S. corn for delivery to China this marketing year, said the USDA. The corn was worth $850 million, based on futures prices in Chicago.