For the second consecutive day, corn futures dropped after a revised harvest forecast from the U.S. Department of Agriculture, according to a published report.
Bloomberg reports the USDA projects U.S. farmers to harvest 13.843 billion bushels of corn this year, which exceeds the forecast made in August and would be the highest number ever. Data estimates signal a 28 percent increase in domestic output over last year's harvest, which was significantly impacted by long-term drought conditions, the news source said.
Joe Vaclavik, president of Standard Grain Inc. in Chicago, Illinois, told the news provider that the USDA report could be indicative of further upward revisions in the months ahead.
"The report was seen as being bearish the corn market in general," noted Vaclavik. "The increase in projected corn yield tells us that the USDA may be open to raising the production number again in future reports."
Though corn harvest projections were revised upward for the country as a whole, the Des Moines Register reports forecasts were lowered for the state of Iowa, however.
According to the news source, Iowa's corn yield projection was lowered by one bushel to 162 bushels an acre. Still, that represents a sharp increase over last year's total.
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