The August World Ag Supply and Demand Estimates on Thursday will include the first USDA yield estimates of the season. The August report has historically pushed the markets up or down significantly. In January, USDA predicted the corn yield at just under 171 billion bushels. Most analysts agree that Thursday’s estimate will likely come in well under the USDA baseline. Pro Farmer’s Brian Grete says corn yield will likely be in the mid-160 range. The Gulke Group’s Jerry Gulke says the likely corn yield estimate will be near the Informa Economic’s estimate of 166.
Purdue Extension agronomists and economists will provide analysis and market forecasts after the numbers are released at noon Indiana time. Hoosier Ag Today will provide live coverage on the Purdue analysis on Facebook beginning at 1:30pm. Sponsored by MacAllister Machinery, the live broadcast from the State Fair will breakdown the USDA numbers and forecast prices and market trends.
USDA will also release the supply and demand numbers on Thursday. It is important that the demand side stays high to keep markets afloat. “What we don’t want to see is them lower both corn yield and corn demand,” Gulke added. “If they lower the demand side such that it overshadows any loss in production, that won’t sit well with traders.”