USDA Forecasts Surprise Analysts

The USDA’s crop production report that came out this week surprised many across the ag sector particularly when it came to corn and soybeans.

USDA Chief Economist Rob Johannson noted, “We’re at 14.2 billion bushels estimated right now. Trade range is also at about 14.2 at the top end, so we’re right at the top.”

That’s bump of nearly one percent from what was considered very high yield forecasts in August.

USDA Meteorologist Brad Rippey said we shouldn’t necessarily be surprised.

“Corn may be a little bit more of a surprise and you probably have to slice and dice it down to the state level to get into the fine details, but the bottom line again is that we went through an entire season with little if any heat stress.”

There is a belief that forecasts could change once the USDA gets more detailed information on the impact of Hurricanes Harvey and Irma.