Despite unfavorable crop conditions reports earlier this week, USDA “doubled-down” on its yield analysis, raising both corn and soybeans yield projections in September’s World Agriculture Supply and Demand Estimates on Tuesday.
Does September’s yield data suggest that the crop conditions reports are irrelevant for projecting yields on the US crops during the pre-harvest time period? Mike Zuzolo is a Market Analyst with Global Commodity Analytics and he says there is some head-scratching going on:
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For instance, Zuzolo points out that Illinois yields for corn was pushed one bushel higher in the September report to 189 bushels per acre, but:
If the correlation between crop conditions and yield projections continue to not add up for Zuzolo, the way he sets a marketing plan will change dramatically: