USDA Cuts Corn Yield In May Report Gordy [Listen]
Gordy Kralovetz with Chiodo Commodities said it was very unusual for the USDA to cut the projected yield for this year's corn crop so early in the season. In the Outlook Forum late in March the USDA projected an all time record yield of about 183 bushel an acre. The May Supply Demand report is the first USDA in season estimate of the corn crop. In this mornings report the USDA dropped the corn yield to 177 bushel an acre. That is a pretty sizable drop so early in the season. Maybe the USDA is considering how late the corn crop is getting planted this year?
The headline numbers were really the wheat crop. Again it was unusual for the USDA to drop the wheat crop this early. Maybe the USDA could no longer ignore the trouble we have in the U.S. with the winter wheat crop. Remember around 40 percent of the winter wheat is rated poor to very poor. The all wheat crop would have been much lower still if the USDA had not projected a big spring wheat crop. You have to question that assumption when you look at where most of the spring wheat is grown in the United States.
Spring wheat is grown in North Dakota and the Red River Valley in Minnesota. They have been dumped on by a couple huge snow storms and now a lot of rain. It sure looks like there will be a lot of prevented plant acres up there? Click on the link and listen to Gordy talk about the May USDA Report about 15 minutes after it was released this morning!