A new World Agricultural Supply and Demand Estimates (WASDE) report from the U.S. Department of Agriculture (USDA) offers a mixed bag for American farmers and ranchers.
Another record-setting corn crop is expected, but production won’t be as high as originally forecast.
The September WASDE report forecasts about 15.093 billion bushels of corn will be produced in the U.S. this year.
Corn yields are also expected to break records this year. USDA predicts an average of 174.4 bushels per acre.
The average corn price is up about a nickel, but remains below $4 a bushel. Agri-Pulse reports prices are between $2.90 and $3.50 a bushel.
A record-breaking 4.2 billion bushels of soybeans are also anticipated. Soybean production is projected up three percent over August forecasts and up seven percent over last year.
Record-breaking soybean yields will likely contribute to record production. Estimates right now are around 50.6 bushels per acre.
The average soybean price is down to about $8.30 to $9.80 a bushel.
Cotton production is also expected to be up this year. The report predicts a 25 percent increase over last year to about 16.1 million 480-pound bales, according to Agri-Pulse.
Both upland and pima cotton production are also on the rise with increases of 25 percent and 30 percent, respectively.
Grain sorghum growers will also produce more this year. The forecast predicts about 14 million bushels with prices projected between $2.75 and $3.35 a bushel. That’s up five cents over the August forecast.
The WASDE report lowered predictions for rice production due to flooding in Louisiana and other southern states. All rice supply estimates are down 0.6 million per hundredweight. Rice production estimates are down 7.1 million hundredweight due to lower area and yield.
Global rice production is up 0.7 million tons.
Wheat supply and demand estimates remain unchanged from the August report; however, the marketing year average price is down by a dime a bushel to between $3.40 and $3.90 a bushel.
Beef, pork and broiler production forecasts were lowered in this month’s report. Turkey production is on the rise.
The report indicates the decrease in beef production is forecast on lower than expected third quarter steer and heifer slaughter.
Beef import forecasts for 2016 and next year remain unchanged.
Pork production is down due to slightly lower carcass weights for the third quarter. Pork exports for this year are on the decline.
Broiler production was lowered due to slower than expected growth.
Turkey and broiler exports are down for this year and next. The report indicates it’s due to slower than expected recovery.
The milk production forecast is up over last month’s report due to a steadied cow inventory.
The forecast for 2017 has been raised slightly to reflect more rapid growth in milk per cow.
Cheese and butter prices are down due to a glut of supplies on the world market, but prices for non-fat dry milk and whey are higher due to increased world demand.