Surprise Record-High U.S. Crop Estimates Spur Price Gyrations
- Corn, soybean futures tumble, then recover as demand weighed
- Extended slump by top two crops signal ‘subdued’ farm income
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U.S. corn and soybeans crops are heading for record highs again, threatening to erode farmer income further and hamper agriculture credit conditions.
The U.S. Department of Agriculture said Friday in its monthly World Agricultural Supply and Demand Estimates, or WASDE, report that corn output will rise 11 percent this season from a year earlier, while soybean production will increase 3.3 percent, topping projections by analysts. That quickly sent corn futures to the lowest since October 2014 and soybeans down more than 2 percent. Investors reconsidered demand prospects later in the session, and prices bounced higher.