Federal forecasters are predicting record global wheat and corn production as farmers around the world respond to a prolonged stretch of high grain prices.
Increased production in places such as Argentina and Russia is making global export markets more competitive, with the U.S. Department of Agriculture in its monthly crop report Friday lowering its U.S. export forecasts for soybeans and wheat.
While keeping U.S. corn exports unchanged, the agency said global corn production will hit a record high of 867.5 million tons in the current crop year, easing concerns over tight supplies. Fueling the outlook was a 4% rise in the projected size of China’s corn crop.
“Producers are responding to sustained higher prices over the past few years,” said Doug Bergman, an analyst with RCM Asset Management.