(Indianapolis) – Aug. 11, 2023 – Indiana Farm Bureau’s Chief Economist Todd Davis is offering up his insights on the latest World Agricultural Supply and Demand Estimates (WASDE) report released earlier this afternoon by the U.S. Department of Agriculture (USDA).
“The predictions in the June acreage report were fairly accurate,” said Dr. Davis. “There was an increase in the Indiana corn crop - about 7.6% larger than last year. USDA projects the soybean crop in Indiana to be slightly lower – about 2% smaller than last year.”
According to Dr. Davis, there may be a pricing opportunity for soybeans. Corn is in a rebuilding year, so that will provide headwinds for getting higher prices. However, profitability margin concerns will continue for corn and soybeans.
“Next month, the USDA will send people out in the field for a deeper analysis of yields,” added Dr. Davis. “We’ll keep revising these estimates in the fall. The corn market could absorb a production shock or increase in use and not have a problem. The soybean market is relatively tight, so if the yield is not there like currently expected, there won’t be much of a cushion.”
Read Dr. Davis’s full insights here.
The WASDE report is released monthly and provides annual forecasts for supply and use of U.S. and world wheat, rice, coarse grains, oilseeds and cotton. For more information about the report process and data, visit the USDA’s publications page.
About Indiana Farm Bureau: For more than 100 years, Indiana Farm Bureau (INFB) has protected and enhanced the future of agriculture and our communities. As the state’s largest general farm organization, INFB works diligently to cultivate a thriving agricultural ecosystem to strengthen the viability of Indiana agriculture. Learn more at INFB.org.