Corn Rises on USDA Outlook Cut

The USDA's unexpected cut in the supply forecast led to a market reaction, with corn prices rising. Despite ideal summer weather, recent cooler and rainy conditions have slightly reduced expected crop yields. Farmers face economic challenges due to falling corn prices and oversupply, affecting their spending on future harvests. Companies like AGCO and Monsanto are adjusting expectations for future revenues. Looking ahead, ample supplies mean that even with a shorter crop next year, a return to record levels is unlikely, as reserves are available to buffer supply shortages.

What was the market's reaction to the USDA's unexpected supply forecast cut?

• Corn prices rose by 3%

• Soybean prices fell by 3%

• Soybean prices rose by 3%

• Corn prices fell by 3%

What has been a significant challenge for farmers in the current market?

• Increasing demand for corn

• Rising corn prices

• Falling corn prices and oversupply

• Lack of government support

How are agricultural companies like AGCO and Monsanto adjusting their expectations?

• Planning to exit the market

• Focusing on new crops

• Anticipating a decline in revenues

• Expecting booming revenues

What is a major factor influencing the corn outlook for 2015?

• Government policies

• Technological advancements

• International trade agreements

• Weather conditions

Why won't a shorter crop next year lead to record levels seen in 2012?

• Because of increased competition

• Owing to poor weather forecasts

• Due to a lack of demand

• Because of existing reserves