The U.S. government Tuesday increased its already strong forecast domestic soybean production and yields in 2015 to record levels, the harvest area remain large, in spite of extensive spring flooding.

A new forecast of production and yield of soybean from the Ministry of agriculture of USA (USDA) exceeded the upper level of the market forecasts. The government also raised its forecast of production and maize yield above the average of analysts ' forecasts.

An unprecedented harvest will increase ending stocks of both types of commodities, as the forecast offers soybean at the highest level in nine years.

Ending stocks of corn in the forecast supplemented by reduced exports, and reduced domestic use and the use of ethanol and were above the upper level of projections.

Soybean futures fell sharply after the report was published, the most actively traded January on the Chicago Mercantile exchange fell to record lows of 1.5%. The December CBOT corn contract lost 1.6%, falling to a three-month low.

A new report may become the worst of all the negative news, analysts said Zaner Group and wondered is it possible to later rebound. Despite pessimistic reports about corn, they are expecting higher prices for corn due to crop area (in 2016).

Soybean production in the USA for the 2015/16 crop year is projected to 3,981 billion bushels and an average yield at the level of 48.3 bushels per acre.

The USDA reported that the corn crop for the 2015/16 year will be $ 13,654 billion bushels, this is the third record in the history. The average yield will total 169,3 bushels per acre, second is a record figure.

USDA left the forecast of harvested acreage of corn and soybeans unchanged.

Ending stocks of soybeans for the 2015/16 year is set at 465 million bushels, 40 million above the October forecast and the highest level since the 2006/07 marketing year.

USDA raised its forecast for end stocks of corn to 1,760 billion bushels with 1,561 billion, thereby reducing the projections of ethanol, and export use by the sectors of food, seed and industrial sector.

The forecast of the final stocks of wheat in the U.S. was unexpectedly increased to 911 million bushels to 861 million bushels because of reduced export forecast by 50 million

Source: Thomson Reuters