U.S. corn and soybean supplies will be bigger than expected at the end of the 2015/16 marketing year due to large harvests of both commodities, the government said on Friday.
But old-crop supplies were cut by more than expected.
The U.S. Agriculture Department left its average yield estimates for both crops unchanged - 166.8 bushels per acre for corn and 46 bushels per acre for soybeans - despite a wet spring that has raised concerns about crop development.
The government has only changed its soybean yield projections in the July report three times since 1996, cutting them every time. It has altered its corn yield forecast in the July report six times during the same period.
USDA said in its monthly supply and demand report that corn ending stocks for the 2015/16 crop year would be 1.599 billion bushels, down from 1.771 billion bushels a month ago. Analysts had been expecting new-crop corn stocks of 1.540 billion bushels, according to the average of estimates in a Reuters poll.
Domestic soybean ending stocks for 2015/16 were pegged at 425 million bushels, down from 475 million a month ago. The average analyst estimate was 370 million bushels.
USDA pegged old-crop U.S. soybean ending stocks at 255 million bushels, down from 330 million bushels a month ago and less than the 287 million bushels expected by market watchers. The government raised its estimate of both soybean exports and crush by 15 million bushels.
Old-crop corn ending stocks were cut to 1.779 billion bushels from 1.876 billion a month ago.
USDA forecast the 2015/16 soybean harvest at 3.885 billion bushels and the 2015/16 corn harvest at 13.530 billion bushels, topping market expectations.
Total U.S. wheat production was pegged at 2.148 billion bushels, matching the average of analysts' forecasts.
The government trimmed its estimate of U.S. winter wheat production by 49 million bushels to 1.456 billion, making cuts to its estimate of the hard red wheat, soft red wheat, and white wheat harvests.
USDA's outlook for production of spring wheat other than durum was 617 million bushels, 18 million above market forecasts.
U.S. wheat ending stocks for the 2015/16 crop year were seen at 842 million bushels, up from 814 million bushels a month ago but lower than analysts' forecasts for 861 million bushels.