August USDA report makes analysts shake their heads


The condition of the United States corn and soybean crop drives much of the sentiment on agricultural commodities. The weather stress of 2017 has created much discussion among farmers and analysts that the U.S. crop will be lower than trend line yield.

Apparently the USDA does not agree with farmers or market analysts.

The USDA reported Thursday, its August crop production report with a average corn yield of 169.5 bushels and soybeans at 49.4 bushels.  As you can see in the tweet below from Karen Braun, both of these USDA yield estimates are above trade estimates.

Here is some of the reaction on Twitter:

We will see in the coming weeks if the USDA is right or whether farmers have the better insight on lower yields.

Analyst Matthew Pot will join us on RealAg Radio this afternoon to discuss the USDA numbers. (Listen to Arlan Suderman of INTL FC Stone’s explanation of how the corn yield number is determined on yesterday’s show.)

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