The U.S. Agriculture Department unexpectedly raised its U.S. corn and soybean harvest forecasts on Tuesday, adding further bearish pressure to a market already struggling with massive global supplies.
The harvest outlooks, issued in the government’s closely watched Crop Production report, topped market forecasts for the second straight month.
The impact to the soybean balance sheet was mitigated by strong U.S. exports, but corn supplies will rise as demand from ethanol and food, seed and industrial sectors was seen falling.
U.S. corn production in the 2017-2018 crop year will total 14.185 billion bushels, based on an average yield of 169.9 bushels per acre, USDA said in the report. That compares to the government’s month-ago corn forecasts of 14.153 billion bushels for production and 169.5 bushels per acre for yield.
Farmers also will harvest a record 4.431 billion bushels of soybeans, USDA said, based on an average yield of 49.9 bushels per acre. In August, USDA pegged the soybean harvest at 4.381 billion bushels, based on a yield of 49.4 bushels per acre.
Read more: St. Louis Post-Dispatch