The lower production forecast is due to unusually hot and dry weather in July.
The USDA Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports are issued every month and provide U.S. and global crop forecasts.
The report on crop production is expected to show a lower forecast for U.S. corn production, with estimates pointing to a decline to 12.395 billion bus. from the 12.5 billion in September’s USDA forecast.
U.S. corn ending stock forecasts in the WASDE report are expected to rise to 730 million bus., up from September’s estimate of 672 million bus.
Estimates on the soybean production forecast stand at 3.095 billion bus. That’s up from September’s USDA estimate of 3.09 billion bus.