Different method led to shocking cut to U.S. corn forecast
Food companies and ethanol producers are betting a bumper harvest will replenish corn supplies, which are expected to drop to a 17-year low by the end of the month.
"When the number hit the screen this morning, I was shocked," Peter Meyer, senior director for PIRA Energy, said about the reduced corn yield.
Deutsche Bank, in a note, agreed the change was a "shocker" and reviewed USDA comments about weather to find an explanation. The bank kept its harvest forecast unchanged at 160.8 bushels an acre, despite the USDA's adjustment.
Arlan Suderman, senior market analyst for Water Street Solutions, said he too was expecting a bigger crop than the USDA projected. He pegged the yield at 158 bushels per acre and said he would continue to digest USDA's latest survey-based outlook.
"This is the starting point," he said on Monday about the USDA's report. "I still put this one with a little bit of an asterisk beside it, because the crop was so immature when they were out there."
- Critics of Dow herbicide sue U.S. EPA over approval
- Survey shows big data use increasing
- Partnership to collaborate on bio-stimulants
- DuPont Pioneer celebrates production expansion in Ontario
- No-till may not bring hoped-for boost in global crop yields
- Crop markets moved mostly higher again Thursday night
- How much corn can the ethanol industry use?
- Economist: Taxing P could reduce risk of algal blooms
- Commentary: Government wants farmers to quit farming
- Ag markets made a generally mixed showing Thursday night
- What is the relationship between maturity group, yield?
- Commentary: Ambulance-chaser lawyers take on Syngenta