USDA has pulled off another stunner in reports released today – especially with the outlook for corn and cotton. Correspondingly, markets for both commodities took a tumble.
Many were anticipating a reduction in USDA’s yield estimate for corn. Instead, the September Crop Production report, released at 11 a.m. central, moved the forecast for corn to 169.9 bushels per acre, which is O.4 higher than the estimate given in last month’s report. With some recovery toward the end of trading, December corn futures ended the day down 6-even at $3.51-and a half.
Cotton got a huge bump, with USDA elevating the yield estimate for “All Cotton” to a record 908 pounds per harvested acre ̶ 16 pounds higher than the August outlook. December cotton futures plunged 3 full cents to finish the day at 69.11 cents per pound.
To see the full report, go here:
USDA also released the monthly WASDE report, which is available here:
We’ll have more on these reports and their impact on the markets in our Wednesday morning ag coverage.