US corn, soyabean crops seen heading for record highs, putting pressure on prices

Chicago

US corn and soyabeans crops are heading for record highs again, threatening to erode farmer income further and hamper agriculture credit conditions.

The US Department of Agriculture said Friday in its monthly World Agricultural Supply and Demand Estimates, or WASDE, report that corn output will rise 11 per cent this season from a year earlier, while soyabean production will increase 3.3 per cent, topping projections by analysts. That quickly sent corn futures to the lowest since October 2014 and soyabeans down more than 2 per cent. Investors reconsidered demand prospects later in the session, and prices bounced higher.