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U.S. corn and soybean production in 2014, already pegged at record highs, will be higher than expected a month ago and somewhat above trade expectations, the U.S. government said on Thursday.
Soybean futures fell about 1.5 percent to a new contract low on the U.S. Department of Agriculture report and corn skidded about 2.5 percent.
'We are swamped with grain stocks, not only in the U.S. but in the world,” said Don Roose, an analyst with U.S. Commodities in West Des Moines.
At 14.395 billion bushels, the corn crop beat trade estimates averaging 14.288 billion. Ending stocks were forecast to exceed 2 billion bushels for the first time in a decade.
USDA estimated the U.S. soybean crop at a record 3.913 billion bushels, up 19 percent on the year and above trade expectations averaging 3.883 billion.
Soybean ending stocks will more than triple in 2014/15 from the tightest in four decades to 475 million bushels, up from 430 million a month ago and the highest since 2006/07.
Iowa's corn crop is forecast at 2.44 billion bushels, 13 percent above the 2013 production but unchanged from the August forecast. Based on Sept. 1 conditions, corn yields are expected to average 185 bushels per acre, up 20 bushels from 2013 but unchanged from the August forecast.
If realized, it will surpass 2009 for the highest yield on record for Iowa. Acres harvested for grain remained unchanged at 13.2 million acres.
Soybean production is forecast at 512 million bushels, up 25 percent from last year's 411 million bushels. Soybean yield is forecast at 51 bushels per acre, 6.5 bushels above last year and up a bushel from the August forecast. Area harvested remained unchanged at 10 million acres.
At this point, on the eve of harvest, the major threat to the crop would be a widespread early freeze to cut short what has been a highly successful growing season.