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USDA Production Report Hurts Corn, Cotton, Soybeans; Helps Orange Juice

September 12, 2017 at 22:32 by Vladimir Vyun

The US Department of Agriculture released its crop production report today. The data was bearish for several agricultural commodities, including corn, soybeans, and cotton. In fact, the last one fell by the exchange limit. Yet the same report was beneficial to orange juice, very likely due to the damage done by Hurricane Irma.

The USDA predicted that corn production will be at 14.2 billion bushels in 2017, up less than 1% from the August forecast, but promising the third highest production level in the United States on the record. Soybean production forecast was up 1% from August to the record high of 4.43 billion bushels. Cotton production forecast increased by 6% from August to 21.8 million 480-pound bales. Meanwhile, California Navel orange was expected to be at 1.4 million tons in the 2017–18 season, down 11% from the previous season.

December futures for delivery of corn declined 1.68% to $3.515 per bushel as of 22:23 GMT on CBoT today. November soybean futures dropped 0.99% to $9.505 per bushel. December cotton slumped as much as 4.16% to $0.6911 per pound on ICE. At the same time, orange juice for delivery in November climbed 3.76% to $1.5715 per pound.

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