USDA slashed expectations for soybeans on Friday in a surprise revision to its production outlook, potentially offering some relief to farmers who have struggled with surplus crops and low prices. Soybean production is forecast at 4.46 billion bushels, down 3% from USDA’s October forecast. Yields are expected to average 51.7 bushels per acre, a decline of 1.4 bushels from the previous forecast.
Markets moved slightly higher in reaction to the news, with USDA economist Seth Meyer saying corn increased by 3 cents and soybeans improved by 5 to 6 cents. However, market response was moderated with crop supply still plentiful. “On the bean side, [there was] a pretty late season yield surprise,” Meyer said, “but was still a plentiful carryout, which is really going to temper the market’s ability to push those prices higher.”
