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Investing.com -- Corn futures plunged Tuesday after the USDA’s latest World Agricultural Supply and Demand Estimates (WASDE) report projected record U.S. corn production, while agricultural equipment stocks edged lower.
Corn futures over 2.5% following the release of the August WASDE report, which forecast U.S. corn production at a record 16.7 billion bushels for 2025/26, up 1 billion bushels from last month’s estimate. If realized, this would exceed the previous record set in 2023/24 by 1.4 billion bushels.
The USDA’s first survey-based corn yield forecast came in at a record 188.8 bushels per acre, 7.8 bushels higher than last month’s projection. The agency also increased its harvested area estimate by 1.9 million acres.
The bearish corn outlook pressured agricultural equipment manufacturers, with Deere & Company (NYSE:DE) declining 0.7% and AGCO Corporation (NYSE:AGCO) falling 0.3% as lower grain prices potentially signal reduced farmer income and equipment purchases.
Meanwhile, soybean futures erased earlier losses to gain 1% after the report showed lower-than-expected U.S. soybean production. The USDA forecast 2025/26 soybean production at 4.3 billion bushels, down 43 million from last month’s estimate, with harvested area projected at 80.1 million acres, 2.4 million acres lower than previously forecast.
Wheat futures also reacted to the report, which projected slightly tighter U.S. wheat supplies for 2025/26, with production down 2 million bushels to 1,927 million on smaller harvested area. The USDA raised its export forecast by 25 million bushels to 875 million, citing strong early sales and shipments.
The USDA lowered its season-average corn price forecast by 30 cents to $3.90 per bushel for 2025/26, reflecting the substantial increase in expected supplies. The wheat price forecast was reduced by 10 cents to $5.30 per bushel, while the soybean price remained unchanged at $10.10 per bushel.