CHICAGO — U.S. corn and soybean supplies will be smaller than previously forecast due to harvest shortfalls in key production states, the U.S. government said on Friday.

In its monthly World Agricultural Supply and Demand Estimates report, the U.S. Agriculture Department cut its forecasts for corn ending stocks by 336 million bushels to 2.167 billion bushels and soybean ending stocks by 170 million bushels to 290 million.

Corn production was lowered to 14.722 billion bushels from USDA's previous estimates of 14.900 billion and soybean production was trimmed to 4.268 billion bushels from 4.313 billion.

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