The U.S Agriculture Department. Monday the Department has announced that it was wrong in its previous forecasts, and that improved crop conditions during August will result in a higher than expected soybean yields and production.
The increased soybean production levels are a result of rising demand from both the domestic and export markets. Jim Gerlach, president of A/C Trading in Indiana, said in a statement, "USDA increased (soybean) crush for next year and exports for next year, but you still ended up with production outweighing the demand increases.”
USDA forecasts the 2016/17 U.S. soybean crop at 4.201 billion bushels, based on an average yield of 50.6 bushels per acre. That is above analysts' forecasts that ranged from 4.019 billion bushels to 4.162 billion bushels for production and 48.1 bushels per acre to 50.1 bushels per acre for yield.