USDA lifts US corn crop outlook after raising harvested acres

The U.S. Department of Agriculture announced on Friday that U.S. corn farmers would harvest more acres of grain than they had in 1933, and will produce more grain overall, despite lower crop yields.

After surprising grain traders in August with a large increase in acreage, the agency increased its estimate of how many acres would be harvested in a report on supply and demand.

The large harvest would increase grain supplies, which will benefit livestock producers who use the crop as feed for their animals and ethanol makers. Grain farmers are struggling with low crop prices, and the rising cost of inputs like fertilizer and seed.

The USDA forecasts that the cash receipts of U.S. crop sales will fall for a 3rd straight year, to their lowest level since 2007, when adjusted for inflation.

USDA increased its estimate of 2025 U.S. Corn Production to a record 16,814 billion Bushels from 16.742 a month ago. The average yield was 186.7 bushels an acre, down from 188.8 in August.

Analysts polled had expected that the agency would cut its production forecast to 16.516 million bushels and its yield expectations to 186.2 billion bushels per annum.

The summer crop yields were boosted by favorable weather conditions.

Pockets of Disease

Analysts say that the dry weather of late season has lowered potential.

The USDA has projected that the U.S. soybean yield in 2025 will be 53.5 bushels an acre. This is down from 53.6 bushels per acre a month ago. Production was forecast at 4,301 billion bushels. This is up from 4.292 bpa a month ago as the USDA increased harvested acres.

Analysts expected that the USDA would lower its outlook for soy production to 4.271 billion bushels, and reduce its yield forecast to 53.3% bpa. Reporting by Karl Plume, Chicago

(source: Reuters)