USDA Forecasts Lower Production, Higher Prices for Most Crops

The United States Department of Agriculture (USDA) has released its latest World Agricultural Supply and Demand Estimates (WASDE) report, forecasting lower production and higher prices for most crops.

In the report, sorghum forecast harvested acres decreased by 3.7% compared to August's projection, while peanuts had a 0.9% decrease in projected harvested acres. Corn, cotton, rice, and soybeans all saw less than a 0.5% change in predicted harvested acres.

Forecasted yields were down for the most part, with upland cotton showing the largest decline at 2.8%, to 766 lb. per acre. This would mark a 9.0% decrease compared to last year, largely due to drought across the Texas High Plains which accounts for 63% of US total cotton acres.

The decreased yield and acreage levels have led to decreased production estimates for most crops, with cotton and sorghum seeing the largest drop at 3.0%. Peanuts are projected to have a 2.8% decrease in production, corn a 1.3% decrease, and rice a 0.1% decrease compared to August.