U.S. farmers received some much needed good news on Thursday, when the U.S. Department of Agriculture reported that despite the record temperatures this summer, it raised its estimates for total soybean production, suggesting the draught was not as disastrous as many thought.
According to The New York Times, the favorable readings were isolated to soybeans, however, as the USDA lowered its estimates for corn supplies. This suggests consumers will likely pay more for dairy and meat at grocery stores. Although the report is issued monthly, October's readings are especially important because of their ties to the harvest season.
"I don’t think you are going to see any more significant changes in production figures," said Jerry Norton, an analyst at the Agriculture Department. "The figures out today capture most of the impact of the drought, so it’s hard to see estimates getting much lower from here on."
According to The Wall Street Journal, the USDA expects farmers to produce 2.86 billion bushels of soybeans this season, a 9 percent increase compared to last month's estimate. Corn supplies, however, were revised down to 10.706 billion bushels from 10.727 billion bushels.