ST. LOUIS (AP) — A USDA survey released Wednesday calmed fears that a rainy summer might diminish the U.S. corn crop, showing that the corn harvest will be the second largest on record, while soybeans will hit an all-time high.
Commodity traders bid up corn futures last month based on concern that the new survey of farmers in seven states would show a decline in the corn harvest, and tighten supplies amid high demand from ethanol producers and food companies.
But the survey found only a slight decrease in the number of corn acres that will be harvested, dropping to 80 million from the June estimate of 80.1 million. In all, the corn harvest is expected to come in at 12.8 billion bushels, up 5 percent from last year but 2 percent lower than 2007.
The soybean harvest is expected to be a record 3.20 billion bushels, up 8 percent from last year. Soybean yields are expected to average 41.7 bushels per acre, up 2.1 bushels from 2008. Corn yields are expected to be 159.5 bushels per acre, up 5.6 bushels from last year.
Corn prices for December delivery remained stable Wednesday at $3.30 a bushel on the Chicago Board of Trade, while soybeans for November delivery fell 4 cents to $10.30 a bushel.
The USDA said good weather accounted for the strong showing. Heavy rains in the central Corn Belt states like Illinois delayed planting, but that was countered by mild weather that is expected to boost yields across Ohio and the Atlantic coast.
Cotton production expected to be 13.2 million bales weighing 480 pounds each, up 3 percent from last year's 12.8 million bales. Yield is expected to average 816 pounds per harvested acre, up 3 pounds from last year.
The wheat harvest is expected to be 2.18 billion bushels, down 13 percent from 2008. Wheat yields are forecast at 43.3 bushels per acre, down 1.6 bushels below last year.
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