WASHINGTON – The U.S. Department of Agriculture on Monday lowered forecasts for this year’s corn and soybean harvests, pushing up their prices.

The USDA reportedly said corn production is expected to be 12.02 billion bushels, down from last month's revised estimate of 12.03 billion and below analysts' estimates of 12.08 billion.

Corn yield per acre was expected to be 153.8 bushels.

The soybean harvest has been forecast to be 2.92 billion bushels, down from 2.94 billion, according to the USDA's November report.

Soybean yield per acre was forecast to be 39.3 bushels, down from 39.5 last month.

Corn and soybean futures prices rose in response to the report. Corn for December delivery increased 8 cents to $3.84 per bushel, according to media reports. Soybeans for January jumped 27 cents to settle at $9.48.

Despite the reduced harvest forecasts, the USDA reportedly said it expects world corn supplies to increase while the global use of corn as feed falls this year. The department lowered its estimate of the average price of corn for the year to a range of $4 to $4.80 per bushel, down from $4.25 to $5.25 per bushel last month.

Source: Associated Press