USDA lifts U.S. wheat and corn production estimates

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The U.S. Department of Agriculture on Wednesday lifted its estimates for domestic wheat and corn production for the 2020/2021 marketing year. The government agency, in its latest monthly World Agricultural Supply and Demand Estimates report, raised its expectations for U.S. wheat production by 14 million bushels to 1.8 billion bushels. However, it also lowered its estimate for U.S. wheat imports by 10 million bushels this month to 130 million bushels and reduced expectations for wheat ending stocks by 17 million bushels to 925 million. “If realized, these will be the lowest wheat ending stocks in 6 years,” the report said. U.S. corn production, meanwhile, is forecast at 15.3 billion bushels, up 278 million from the July projection. Corn yields are forecast at a record 181.8 bushels per acre, which is within market expectations, John Payne, senior futures and options broker with Daniels Trading, told MarketWatch. The “big question” will be what did the recent wind storm, that ravaged Iowa and northern Illinois earlier this week, do to the corn yield, he said, adding that the impact is not seen in this report. In Wednesday dealings, September wheat was down 5 1/4 cents, or 1.1%, at $4.89 3/4 a bushel. September corn traded at $3.12 1/4 a bushel, up 3/4 cent, or 0.2%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.