The USDA October Crop Production Report released Friday (Oct. 8) cut corn production estimates by 4% below September's estimates; and soybeans down 2%. The new soybean production estimates, however, would still put the crop at a record high 3.41 billion bushels, up 1% from last year's crop.

Corn production, on the other hand, is pegged at 12.7 billion bushels, down 4% from September's estimate and down 3.4% from last year's record high crop. Despite a considerable increase in corn acreage this year, the reduced crop projections are based on lower corn yields reported in recent weeks from the Corn Belt and Tennessee Valley.

U.S. ending stocks are also projected lower according to Friday's World Agriculture Supply and Demand Estimates (WASDE) Report, which raised the season-average corn price 60 cents per bushel for this marketing year to 4.60-5.40/bu.

As for soybeans, strong exports are whittling away at the expected use of the projected record crop so the 2% decrease compared to last month's projection is having an impact. This, combined with the higher corn price, have pushed WASDE soybean price forecasts 85 cents per bushel higher to a season-average estimate of $10-11.50/bu.