Last Friday, the USDA Supply and demand report projected big corn and soybean crops this year and larger carryover supplies in the future.
Farmers may not see it yet, but the department is projecting a 14.1 billion bushel corn crop and a 3.4 billion bushel soybean harvest.
The Carryover amount of grain is a guage of future prices. The left over corn this year will be 759 million bushels but for next year is expected to be 2 billion bushels.
Soybean carryover is a very tight 125 million bushels but next year it is expected to move to 265 million.
World carryover is also expected to grow to 154 million metric tons of corn and soybeans at 75 million.