USDA projections for more US acres and larger production this year sent corn futures lower on Thursday.
At its annual Agricultural Outlook Forum this morning, the USDA pegged new-crop American corn acres at 91 million acres, up 2.7% or 2.4 million from 2022. Based on the higher planted area estimate and assuming normal weather and a trend yield of 181.5 bu/acre, corn production is projected to top 15 billion bu, about 10% above a year ago. At $5.60/bu, the average expected new-crop corn price is seen down more than $1 from the current marketing year. March corn lost 13 ¾ cents to $6.60 ¼, and December lost 6 ½ cents to $5.85 ½.
Soybeans were also weaker amid ideas the US Federal Reserve may again raise interest rates as it tries to tame inflation, a fear that also weighed on outside markets. The USDA forecast 2023 US soybean planted area unchanged from this past year at 87.5 million acres. March beans fell 5 ¼ cents to $15.34 ¼, and November lost 7 ¾ cents to $13.87 ¾.
Wheat ended mixed, with only the benchmark Chicago market higher. The USDA put 2023 US all wheat planted area at 49.5 million acres, up 8.3% from last year and higher than expected. Lower priced supplies from the Black Sea region remained a bearish influence on the market as well. March Chicago wheat managed a 1 ¾-cent gain to $7.38 ¼, March Kansas City lost 14 ¼ cents to $8.61 ¾, and March Minneapolis was down 6 ¼ cents to $9.08.
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