Corn Slumps as U.S. Output Projection Is Bigger Than Expected
- Soybean futures gain after USDA cuts output estimate
- Record spring flooding led to historically delayed planting
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Corn futures slumped after the U.S. Department of Agriculture delivered a production forecast that was bigger than analysts expected as plants have been able to do relatively well despite a delayed growing season.
Record spring flooding led to a historically delayed planting season in the Midwest. The late start meant many analysts and traders have been expecting a negative impact for yields. But crops have proved to be resilient, partly thanks to better weather as the growing season progressed. The USDA has consistently delivered a rosier outlook for supplies than the market predicted, sparking a slump for prices.