Are record US corn and soybean crops bigger than thought?

The government will raise its estimates of the U.S. corn and soybean crops modestly when it issues its new forecasts for the record-setting fall harvest, say traders in two surveys. In straw polls by Reuters and Bloomberg, traders said they expect a corn crop of 14.56 billion bushels and a soybean crop of 3.97 billion bushels. Corn would be up by one-half of 1 percent and soybeans up by 1 percent from USDA’s estimates in early October. USDA is to release the monthly Crop Production and companion WASDE reports on Monday.

Along with a slightly larger crop, traders say the U.S. corn stockpile at the end of this marketing year will be a bit larger than USDA estimated in October. They say the soybean carry-over will be marginally smaller. In both instances, the inventories would be the largest in years and would not alter prospects of lower commodity prices for at least a year.

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