The U.S. is likely to produce a record 14.27 billion bushels of corn and 3.25 billion bushels of soybeans in the 2012-13 marketing year, with the large crop pushing down prices for corn, soybeans and wheat, the U.S. Department of Agriculture said Friday.
The output projections were above the USDA’s baseline forecasts issued this month, which projected corn output of 14.235 billion bushels and soybean output of 3.215 billion bushels in the year from September 2012 to August 2013. Those projections were compiled in November as part of the government’s budget process. In the 2011-12 marketing year, corn output was 12.358 billion bushels and soybean production was 3.056 billion bushels.
Farmers are likely to plant so much corn this year–about 94 million acres, the most since 1944–that production will sharply overshoot demand, pushing up stocks and pulling down prices, the USDA said. Recent high corn prices have also made farmers more likely than usual to plant that crop instead of soy in the next year, analysts say.