On Friday, the USDA released its January Crop Production, World Agricultural Supply and Demand Estimates (WASDE) Dec. 1 Grain Stocks, and Winter Wheat Seedings reports sparking a drop in the commodity markets. CGB Grain Merchandiser Justin Allaman shares some of the highlights from the report.
“USDA came out and they did increase the 2023 yields for both corn and soybeans. The national average beans, increase that seven-tenths of a bushel up to 50.6. That was actually a significant move on their part. Unusual they’d be adjusted that much. And the corn yield was raised to 177.3. So, that’s actually a record. That means we had a record production of 15.3 billion bushels. And then, unfortunately, that just brought us down to new contract lows and the lowest price levels we’ve actually seen since the end of 2020.”
Allaman adds that while corn and soybean prices might not reach the price targets farmers have had their eyes on, and try to take advantage of modest bounces in the market.