US corn and soy prices fall sharply as production increases

The USDA reported on Monday (Jan 12) that the US corn and soy prices dropped sharply as production increases.

For this crop year ending August 31, the USDA predicted an increase in corn production of 21.4 percent to 1,790 million bushels and an increase in soy of 9.8 percent to 225 million bushels.

Before the market opened Monday, traders had expected corn and soy production would drop because of the late harvest.

By the time the market closed, March corn futures were down 30 cents and March soy futures fell 83.50 cents.

Soy may recover a bit quicker than corn because the US is a net exporter of soy to China.