By Kirk Maltais

The U.S. will produce less corn and soybeans than previously anticipated, with a smaller area of land harvested than expected, according to the Department of Agriculture.

In its latest world supply and demand report, the USDA cut its estimate for the domestic corn crop to 13.73 billion bushels, and its outlook for soybean production to 4.28 billion bushels.

These estimates are less than what analysts surveyed by The Wall Street Journal had projected. The survey put the corn-production estimate at 13.92 billion bushels and soybeans at 4.36 billion bushels

Following the USDA's data release, corn and soybeans futures on the CBOT have surged. Most-active corn futures are up 2%, and soybean futures are up 1.6%.

Write to Kirk Maltais at kirk.maltais@wsj.com

USDA Reduces U.S. Corn and Soybean Output Outlook

The U.S. Department of Agriculture announced a reduction in corn and soybean production estimates, with a decrease in the area of land harvested. The USDA cut its estimate for the domestic corn crop to 13.73 billion bushels and soybean production to 4.28 billion bushels, which are lower than projected by analysts surveyed by The Wall Street Journal.