The U.S. Department of Agriculture (USDA) raised its corn and soybean estimates again in its November World Agricultural Supply and Demand Estimates (WASDE) report. The figures surprised analysts with higher-than-expected corn and soybean numbers.
The record crop estimates keep pushing prices further down. Corn and soybean futures dropped in response to the record forecast.
The agency said farmers will grow 15.226 billion bushels of corn this year, with an average yield of 175.3 bushels an acre—the highest figure of corn yield to date, according to Reuters.
The report projected soybean production at 4.361 billion bushels, 11 percent higher than last year’s record with soybean yield 52.5 bushels per acre. The U.S. soybean price range is projected at $8.45 to $9.95 per bushel.
The agency slightly increased its U.S. cotton estimates as a larger Texas crop is partially offset by decreases for the Southeast. U.S. ending stocks are estimated at 4.5 million bales.
The WASDE report projected U.S. wheat ending stocks raised 5 million bushels to 1.143 million on reduction in food use. Wheat yields of 52.6 bushels per acre and wheat production of 2.32 billion bushels will not be revised this month.
The 2016/17 U.S. rice crop is reduced 1.2 million cwt. to 234.8 million on lower yields. The average yield forecast is reduced 39 pounds per acre to 7,493.
Red meat and poultry production increased from last month. Beef exports are expected to decline modestly in 2016 based on recent trade data. Cattle prices are forecast lower for the remainder of 2016 and for 2017.
Milk production forecasts for 2016 and 2017 are lowered from last month as recent data indicated that the U.S. cow inventory increased less rapidly than previously expected.