WASHINGTON, Aug. 12, 2014 – The U.S. corn crop will reach a record 14.032 billion bushels, up from 13.86 billion forecast a month ago and the previous record of 13.925 billion in 2013, USDA said today in a monthly report. Yields were projected at 167.4 bushels per acre, the highest ever, compared with 158.8 bushels last year.

Despite the bin-busting projection, American Farm Bureau Federation Deputy Chief Economist John Anderson said corn prices, which are near four-year lows, are expected to trend upward as the market was expecting an even bigger crop, about 14.2 billion bushels, with yields of around 170 bushels per acre.

Yesterday, USDA said about 73 percent of the corn crop was in good or excellent condition, compared with 64 percent at the same time last year.

The soybean crop will reach 3.816 billion bushels, also a record, up from 3.8 billion forecast in July and 3.289 billion in 2013, USDA said.

Corn is the most valuable U.S. crop, with soybeans in second place.

USDA increased its estimate for harvested cotton acres from 9.7 million in July to 10.24 million and raised its yield projection by 4 pounds to 820 pounds per acre, adding about 1 million bales to expected production. The USDA consequently raised ending stocks projections from 5.2 to 5.6 million bales, which would be the largest US carryover since 2008-2009.


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This story was updated at 4:55 p.m. eastern time.