USDA dramatically lowered the corn and soybean production forecasts in its August crop report released today.
Corn production is forecast at 10.8 billion bushels, down 13 percent from last year and the lowest production since 2006. The average yield for corn was forecast at 123 bushels per acre this year, down 23 bushels per acre from the July prediction and 24 bushels lower compared to 2011. The agency predicted record average corn prices in a range from $7.50 to $8.90 per bushel, up sharply from the $5.40 to $6.40 per bushel projected in July.
Cotton production was forecast at 18 million 480-pound bales, down 13 percent from last year.
Soybean production is forecast at 2.69 billion bushels, down 12 percent from last year and the lowest production since 2003. The average yield was forecast at 36 bushels per acre, down 5 bushels per acre from the July prediction and compared to 2011.