South Dakota corn, soybean crop to decline this year

Wheat slipped as traders braced for the US Department of Agriculture's monthly supply  demand reports

The weekly crop report from the federal government says South Dakota's corn and soybeans are maturing at a pace behind last year's and the five-year average.

Another month and another World Agricultural Supply and Demand Economics (WASDE) report from the Department of Agriculture is upon us. Total production is forecast at 918 million bushels, down 3 percent from a year ago.

Soybeans are a similar story with the average trade estimate at 4.328 billion bushels this month on yields of 48.8 bushels an acre. If realized, this will be the third highest yield and production on record for the United States.

Corn production is forecast at 428 million bushels, down 17 percent from a year ago.

Chicago Board of Trade (CBOT) grains futures closed mixed on Tuesday with the corn and soybean prices plunging due to higher official crop estimates.

Soybeans per acre could decline by about 13 percent, from 55 bushels per acre past year to 48 bushels per acre, according to the release.

The crop progress report released September 11 shows a slight drop in soybean conditions but corn remains stable.

Analysts, on average, had expected corn production of 14.035 billion bushels and a yield of 168.2 bushels per acre.

Factoring in effects of hurricanes Harvey and Irma could change the picture though. The most-active wheat contract on the Chicago Board Of Trade eased 0.2 percent to $4.34 a bushel, having closed down 0.7 percent on Monday, when prices hit a low of $4.31-1/2 a bushel - the weakest since August 31.

For soybeans, the US ending stocks are now estimated at 475 million bushels, compared with the average analysts' estimate of 442 million bushels.



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