By Mark Weinraub
WASHINGTON, March 9 (Reuters) – U.S. soybean supplies will be bigger than expected at the end of the marketing year as a record harvest in Brazil will flood the global market, cutting into demand for U.S. exports, the government said on Thursday.
The U.S. Agriculture Department in its monthly supply and demand report raised its outlook for soybean end stocks for the 2016/17 marketing year by 15 million bushels to 435 million bushels. The bump reflects a 25 million-bushel reduction in U.S. soybean exports, which is partially offset by a 10 million-bushel increase in soybeans crushed by domestic processors.
Chicago Board of Trade soybean futures sank to their lowest level in eight weeks after the report was released.
Analysts had expected the report to show soybean ending stocks of 418 million bushels, according to the average of estimates in a Reuters poll. Estimates ranged from 400 million bushels to 444 million bushels.
For corn, the government held its end stocks view and export forecast steady despite raising the outlook for…