INSTANT VIEW-USDA predicts record-high US corn harvest, cuts soy acres

CHICAGO, Aug 12 (Reuters) - U.S. farmers this year are expected to harvest the biggest corn crop on record, the U.S. Department of Agriculture said on Tuesday.

The government predicted a record-high corn yield of 188.1 bushels per acre and also raised its estimate of corn acreage. For soybeans, the USDA also predicted a record-high yield, but production of the oilseed is expected to fall 2% compared to last year due to reduced acreage.

Highlights:

* USDA August crop supply/demand report summary

* USDA predicts record corn, soy yields

* Trade estimates for corn, soy production

* Trade estimates for U.S. ending stocks

* Trade estimates for world crop end-stocks

* Trade estimates for U.S. wheat production

COMMENTS:

RICH NELSON, CHIEF STRATEGIST FOR ALLENDALE INC:

"My biggest surprise is definitely acreage, and certainly that's true for corn and soybeans. Corn planted acres up 2.051 million acres, absolutely unprecedented ... July rainfall was certainly the big main driver for clearly above-normal yields. We can point out that daily highs during pollination were only one degree over normal, so the heat really was not that much of an issue. Moving into later August, we're going to have some light dryness. Maybe we'll curtail some of these yield numbers, but the main story is this high yield."

ARLAN SUDERMAN, CHIEF COMMODITIES ECONOMIST FOR STONEX:

"The big surprise ... was the acreage adjustment made by USDA. It slashed 2.5 million from soybean planted acres, putting 2.1 million of those acres into corn to increase the size of that crop that already had the bumper yield. The net result was a cut of soybean production ... leaving ending stocks at a snug 290 million bushels. Question is, can we export that many beans if China doesn't show up?"

TED SEIFRIED, CHIEF MARKET STRATEGIST FOR ZANER AG HEDGE:

"If you go back to the planted acreage survey, there were 3.63 million acres of corn left to be planted and 11.5 million acres of soybeans left to be planted. So apparently, guys (farmers), at the end of May, going into June, shifted 2 million acres back towards corn. Obviously that changes the face of these balance sheets. It's a rather bullish story for beans, especially if there's any sort of weather concerns."

"Corn is a problem. We're at a 2.1 billion bushel carry-over right now, and that's with adding 545 million bushels of demand."

TERRY REILLY, SENIOR AGRICULTURAL STRATEGIST FOR MAREX:

"Traders thought the USDA would be a little bit more conservative to leave a little room for the upside (on corn yields) but they really swung for the fences.... (USDA's corn and soybean export forecasts) are working estimates, as policy and prices will dictate where exports will end up at the end of crop year."

RANDY PLACE, ANALYST WITH THE HIGHTOWER REPORT:

"(The United States is) the cheapest origin for corn exports in the world. That may mitigate some of the downside potential (for corn futures)."

DON ROOSE, PRESIDENT OF U.S. COMMODITIES:

"Extremely negative report on corn, positive report on beans, but you have to believe their (USDA's) export numbers."