The U.S. Department of Agriculture says spring flooding did not cause as much crop damage as thought, but dry conditions on the northern plains are hurting spring wheat yields. 
A USDA production report released Aug. 12 said corn production is forecast at 12.3 billion bushels, the second largest on record and more than analysts expected.
Based on conditions as of Aug. 1, yields are expected to average 155 bu. per acre, up from 148.9 bu. forecast in July and 151.1 last year.
Read Also
One Beer Market Updates Day 3 – Lentils and beef
Day 3 of the One Beer Market Update at Ag in Motion 2025.
The estimate of U.S. harvested corn acres rose to 79.3 million from 78.9 million in July.
Corn prices in Chicago initially dropped but by the close of the day had risen on technical factors and lingering worries that Midwest crops are still late and could run into trouble before harvest is complete.
Oilseed prices ended the day higher after the USDA estimated 2008 U.S. soybean production at 2.973 billion bu., a little less than the average of analysts’ estimates for about three billion bu.
USDA lowered its yield forecast for spring wheat and durum, reflecting dry conditions in North Dakota, Montana, Idaho and Oregon.
The national spring wheat yield was set at 36.4 bu. per acre, down from 36.8 bu. in July and 37 bu. last year. The durum yield was set at 33.5 bu., down from 34.8 last month and 33.9 last year
However, because of increased acreage it expects a larger spring wheat crop than last year. USDA forecasts 500.99 million bu., up from 479.05 last year.
The durum crop was put at 86.57 million bu., up from 71.69 bu. last year.
The overall U.S. wheat crop, including winter wheat production, was forecast at 2.46 billion bu., up from 2.07 billion last year.
Minneapolis wheat futures closed the day up, but Chicago wheat dipped slightly.
USDA does not yet have a U.S. canola production estimate, but it put the harvested area at 979,000 acres, down from 1.16 million last year.
