Investing.com -- Baird analysts said Wednesday that elevated corn and soybean supplies could push the North American large agricultural equipment demand recovery into 2028, following the release of government crop reports showing continued oversupply conditions.

The U.S. Department of Agriculture reported corn ending stocks on June 1 at 5.294 billion bushels, up 14% year-over-year and near the highest levels in decades. The figure came in slightly below the 5.392 billion bushel consensus estimate. Corn acreage for 2026/27 reached 95.34 million acres, the fourth highest since 1944, compared to the 94.99 million acre consensus.

Corn prices rose intraday to above $4.10 per bushel but remained near the $4.00 per bushel range. Baird estimates farmer breakeven levels at more than $5.00 per bushel. The July 2027 futures contract stood at $4.70, down from above $5.00 last month.

Soybean ending stocks on June 1 totaled 1.061 billion bushels, slightly above the 1.051 billion bushel consensus. Acreage for 2026/27 matched expectations at 85.37 million acres. Soybean prices pulled back close to $11.00 per bushel, with the July 2027 contract at $11.70. Baird estimates farmer breakeven levels closer to $13.00 per bushel.

Wheat ending stocks came in at 920 million bushels, 2% above the 935 million bushel consensus. Acreage for 2026/27 reached 42.70 million acres versus the 43.858 million acre consensus.

Baird said the disconnect between crop prices and input costs, combined with elevated government subsidies and favorable crop conditions, makes a near-term catalyst for price increases difficult to identify absent a weather event. The firm said risks are rising for 2027 equipment order periods to potentially decline year-over-year.