2023 Crop Yields Show Positive Outlook, Weather Remains Decisive Factor

The USDA has released its first survey-based crop yield estimates for 2023, showing an increase in yield averages for corn and soybeans compared to the previous year. While the estimates were slightly below trade expectations, the report was seen as favorable by market experts. However, the optimism could be tempered by forthcoming weather conditions. In Illinois, dry conditions impacted yields earlier this year, but recent rains may offer a brighter outlook. The USDA’s findings also highlighted adjustments to grain stocks for 2023/24, while South American estimates remained largely unchanged except for an increase in Brazil’s corn production.