The U.S. Department of Agriculture released its monthly outlook on Friday morning, showing more bad news for American farmers. The USDA raised its projections for U.S. stockpiles of corn and wheat by over 5% to 1.835 billion bushels and 1.055 billion bushels, respectively.
Meanwhile, expectations for soybean supplies were steady at the already overwhelmingly large 900 million bushels.
Alongside these bearish outlooks, futures markets for the three crops fell to new lows, prompting some optimists to cite the adage: “the best cure for low prices is low prices.” Low-price grain can encourage higher consumption and lower future planting, which could ultimately cut into overwhelming supplies and boost markets.