Grain commodity futures plunged sharply on Wednesday after the US Department of Agriculture hiked its forecasts for production this year.
In a report, the USDA said it now expects corn production to total 13.7 billion bushels this year from about 81 million acres of land, up from the forecast of 13.53 a month ago. Soybean output is expected at 3.916 billion bushels, up from 3.885 estimated last month.
According to Reuters, the estimates exceeded analysts’ forecasts.
And right on cue, several grain futures nosedived.