Washington, D.C.-The USDA’s World Agricultural Supply and Demand Estimates report, released on Dec. 11, shows a projected 350 million bushel, or 31 percent, increase in the amount of corn forecast to be left at the end of the marketing year next summer. The ending stocks increase reflects a 300 million bushel drop in the expected use of corn for ethanol production and a 100 million bushel cut in exports. Despite the increase in projected corn stocks, U.S. corn and soybean futures rose on Thursday due to the weak dollar and a crude oil rally. Corn futures on the Chicago Board of Trade for December delivery ended 11.25 cents, or 3 percent, higher at $3.38/bushel, while CBOT January soybeans rose 27 cents, or 3 percent, to $8.564/bu. The dollar slipped to a seven-week low against the euro, and crude oil closed up $4 a barrel to near $48 due to the weaker dollar and expectations that OPEC will cut more oil supply. USDA kept its forecast for U.S. soybean stocks for the marketing year-end at 205 million bushels, the tightest supply in five years. USDA increased its export forecast for soybeans on Thursday due to strong demand for U.S. soybeans from China, but also predicted that domestic processors will crush fewer soybeans due to poor profit margins. USDA projected a season-average farm price for corn at $3.65-$4.35/bu, down on both ends of the range from last month’s $4.00-$4.80/bu. The season-average soybean price range for 2008/09 was projected at 8.25-$9.75/bu, down $0.85/bu on both ends. The report also projected higher feed grain ending stocks for 2008/09 for barley and oats, and also shows a slight increase in wheat production, with the domestic all-wheat season average farm price projected at $6.40-$7.00/bu, down 15 cents.
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