Soy estimates raised, U.S. corn estimates trimmed in USDA Crop Production Report.

There will be plenty of soybeans in 2015 after USDA in its crop report on Monday raised production for the two largest producers, the United States and Brazil, and hiked year-end world supplies by nearly 1 million metric tons.

The larger U.S. crop of nearly 3.97 billion bushels was probably a bigger surprise than the USDA crop report upping Brazils crop to 95.5 million metric tons from 94 million. South American analysts had previously hiked crop estimates for that country, while a number of U.S. analysts expected a smaller U.S. number.

Winter wheat acreage trimmed to 40.45 million in USDA crop production report

The updated production numbers knocked Chicago soybean futures sharply lower and the actively traded CBOT March finished Monday near technical support at its 100-day average of about $10.14 a bushel.

USDA didnt cut U.S. soybean production like we found in our survey, though it did reduce harvested acreage by 342,000, said Bryce Knorr, Farm Futures senior analyst, who had forecast 3.844 billion bushels.

Chicago corn futures finished with thin gains after USDA, as expected, trimmed the 2014 U.S. corn harvest. The crop is still a record at nearly 14.22 billion bushels, but that is down from the previous 14.41 billion. The new number was achieved by a lower average yield of 171 bushels per acre, versus the previous173.4.

USDA cut its forecast for corn production as we expected, but didnt reduce carryout as much as anticipated, because it cut feed usage, That change looks warranted based on first quarter disappearance, said Knorr. Ultimately carryout could be reduced 50 million to 75 million bushels more if exports improve. Corn should also find support from ideas farmers will plant fewer acres in 2015.

Farm Futures released its 2015 planting survey last week, which showed U.S. farmers intend to plant 88.5 million acres, down 2.2% from 2014, and about 88.3 million soybeans, or 5% more.

Winter wheat acreage was at 40.45 million in Mondays USDA crop report, a 4.6% drop from 2014s 42.4 million. Reductions were in hard red winter and soft red winter.

Wheat futures finished lower on Monday as U.S. wheat has not been price competitive with foreign origins in export markets.

In the supply and demand tables, USDAs crop production report left the wheat export forecast for the 2014 harvest unchanged at 925 million bushels, but worries remain.

Wheat feeding was cut as we expected, but the agency made no changes to its forecast of exports, which still appear weak, said Knorr. Winter wheat seedings were less than expected, which could provide a little support to an otherwise weak market.

Results from the January 2015 USDA crop production report