Corn production is expected to hit 13.4 billion bushels, which is 2 percent higher than last year. Soybeans are also up by the same mark, and both crops saw record-high rates in 2009. The former is set to see yields of 165 bushels an acre, while the latter could see 44.
Of particular note for those who use farm equipment to make a living is the fact that wheat production is 2 percent higher than was forecast in July. Recently, Russia announced it is halting grain exports, including that crop, because of a drought the country is experiencing.
As a result, higher output from the U.S. and other countries may be needed to offset the drop off that will come from Russia's export ban. U.S. Agriculture Secretary Tom Vilsack said recently that global demand for grain should still be satisfied.
Given Russia's actions, wheat prices have increased of late. Combining that with worldwide demand could prove to be advantageous to U.S. farmers.
