USDA Cuts Corn Production Projections While Boosting Soybean Outlook
The USDA's latest World Agricultural Supply and Demand Estimates report projects a decrease in corn production for the 2026-2027 marketing year, while increasing soybean production. The report forecasts corn production at 15.8 billion bushels, down from last month's estimate of 16 billion bushels.
According to Karen Braun, chief market analyst at Zaner Ag Hedge, U.S. corn harvested area came in below both trade expectations and last month's estimate. This is a turnaround from the surprisingly high areas printed in the previous months and cycle.
The USDA projected nearly 97 million acres of corn planted and about 89 million acres harvested. The yield for corn was reduced to 178.5 bushels per acre, down from 180.7 bushels in August. However, this decrease comes paired with a slight upward trend in average farm prices for dollars per bushel.
Exports for corn remained the same at 3.3 billion bushels despite lower production, reflecting steady demand expectations. In contrast, soybean production is forecast to be higher, with an increase of 16 million from last month's estimate. Soybean yield increased slightly this month and would rank second all-time after last year.
The season-average soybean price is projected at $12 per bushel, up 60 cents from the previous month. China has allegedly ramped up purchases of U.S. soybeans ahead of President Xi Jinping's visit to Washington on September 24.