USDA surprised many with the crop production forecast out this month estimating a two percent increase from last month for corn.
Based on conditions as of November 1, yields are expected to average 175.4 bushels per acre, up 3.6 bushels from the October forecast and up 0.8 bushel from 2016. If realized, this will be the highest yield on record for the United States.
“It’s a major surprise for the trade to see a production increase this large for corn,” said Brian Hoops, Midwest Market Solutions, during the MGEX crop commentary call. “It really is hard to make sense that this yield number would be justified by crop ratings, which all summer were near 10 year low ratings.”
Listen to Hoops’ corn commentary here: Brian Hoops, Midwest Market Solutions