Government Trims Corn Crop Estimate

The Agriculture Department cut its forecast for the nation’s corn harvest Thursday to 7.37 billion bushels and boosted its price projections sharply to reflect world competition for feed grains.

The forecast, reflecting a harvest that is nearly over, dropped 2 percent from October’s 7.54 billion bushels and was below the 7.47 billion market analysts had predicted. The forecast for soybeans dropped to 2.18 billion bushels, less than a 1 percent decline from the October forecast.

Because of the smaller crop and increasing export demand, the department added 20 cents to its projected price range for corn in the marketing year that ends next Aug. 31. Prices should range from $2.95 to $3.35 a bushel.

Higher prices add to the pressure on the livestock industry, because corn is a primary feed, with highercost producers starting to thin herds.

Although sharp export demand is boosting pork and beef prices, the export pressure on U.S. feed prices is also strong.