Corn crop could be larger than expected, while soy and raisins could be smaller
The scorching drought across the U.S. has cut corn production to the lowest level in six years and soybeans to the lowest in nine years, the government forecast last week, but the corn crop is larger than expected, which may relieve tight supplies for the third year in a row.
The fall harvest is running faster than usual, but the U.S. Department of Agriculture (USDA) lowered its corn forecast by less than 1%; traders had expected a cut of nearly 4% from August. The surplus at the end of this marketing year would be the smallest since 1996 but 24% larger than the trade expectation.