Houston, 11 October (Argus) — The US Department of Agriculture (USDA) today estimated corn production yields for the US 2012-13 harvest would be lower than market expectations, and also revised down the projected levels of corn production.
The USDA predicted this year's crop will yield 122 bushels/acre in its monthly World Agricultural Supply and Demand Estimates (WASDE), down by 1 bushel/acre from trader expectations. In its September report, the USDA projected a yield of 122.8 bushels/acre. The yield estimate for last year's crop stands at 147.2 bushels/acre.
Overall production of corn was revised down by 21mn bushels to 10.7bn bushels. While this result was bearish compared to market expectations of 10.6bn bushels, corn futures surged this morning. The USDA reduced corn carryover more than expected to 619mn bushels, down 114mn from last month's estimated 733mn bushels.
December Cbot corn futures traded as high as 772.50c/bushel in early morning trade, or 36c above the opening price.
Corn used for ethanol was predicted unchanged at 4.5bn bushels, compared to 5bn bushels in the 2011-12 harvest, the USDA said.
Global corn production for this harvest was lowered 2mm t with reductions seen in the US and Europe.
Oilseed production in the US was revised in contrast to corn, as output was projected 6.2mn t higher at 88.2mn t. Higher harvested area and yield brought on a 226mn bushel increase in US soybean production to 2.86bn bushels, the agency said.
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