According to Stone X Group Chief Commodities Economist Arlan Suderman, the story is smaller crops across the board. “The decline in corn and wheat production estimates are significant. U.S. corn yields are estimated at 174.6 bushels per acre. World wheat stocks fell 12 million metric tons, largely on reduced production estimates in major exporting countries, especially Canada, Russia and the U.S. The wheat and corn interaction is going to be important because when one is small, it leans on the other. They’re both small this year.” Suderman says USDA’s yield estimates are based on farmer surveys and satellite data. Next month’s supply/demand report will be based on boots on the ground objective field surveys. Between now and then, various crop tours will be important.
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