USDA’s September crop forecast calls for an increase in corn yields in all major corn producing states, except South Dakota. As for soybeans, analysts look yields to be above last year in the northern Corn Belt states where early frost reduced production last year. Midwest and southern yields are forecast to be good, but may be a bit below last year’s record levels.

The USDA report indicates a corn crop at 10.64 billion bushels, the second largest on record and just slightly below anticipated total corn use in the year ahead. Total U.S. corn supplies, including the largest carryover crop in 17 years, are forecast to exceed last fall’s supplies by 0.6 percent, according to Robert Wisner, Iowa State University Extension economist.

The U.S. soybean crop is forecast at 2.86 billion bushels, 9 percent below last year’s crop and about 3.5 percent below anticipated U.S. usage. However, with the largest carryover stocks since 1991 and a record large South American crop, soybean supplies should be adequate for the year.

This means pork producers have the chance to lock in low feed prices for the coming year.