USDA lowered its forecast for 2009 corn production and yields in the latest report out today, but increased the soybean estimate.

Corn production is forecast at 12.9 billion bushels, down 1 percent from last month but 7 percent higher than 2008. Based on conditions as of November 1, yields are expected to average 162.9 bushels per acre, down 1.3 bushels from October but 9.0 bushels above last year. Despite the drop in yield from October, this yield will be the highest on record if realized. Total production will be second highest on record, only behind 2007. Within the Corn Belt, forecasted yields in Minnesota and Wisconsin increased, while Illinois, Iowa, and Michigan yields decreased.

Soybean production is forecast at a record high 3.32 billion bushels, up 2 percent from the October forecast and up 12 percent from last year. Based on November 1 conditions, yields are expected to average 43.3 bushels per acre, up 0.9 bushel from last month and up 3.6 bushels from 2008. If realized, this will be the highest U.S. yield on record.

The corn harvest continues to lag far behind normal. According to USDA, just 37 percent of the corn had been combined as of Sunday, compared to 82 percent average. Soybeans are doing better with 75 percent harvest compared to 92 percent average.

Analyst Brian Hoops with Midwest Market Solutions told reporters on the Minneapolis Grain Exchange crop call that many farmers are talking about leaving their corn in the field. “There’s a lot of producers in the northern part of the corn belt, North Dakota in particular, that are likely to leave the crop sit throughout the winter because of the concerns about dry down and the cost of drying the corn down manually.”