USDA projects lower corn production

Washington-According to USDA’s June 10 World Agricultural Supply and Demand Estimates report, U.S. feed grains supplies for 2009/10 are projected lower, with reduced prospects for corn yields and production. Corn production for 2009/10 was projected at 11.9 billion bushels, down 155 million from last month’s estimate. Citing planting delays during May that reduced yield prospects in the Eastern Cornbelt, the report projected the national average corn yield at 153.4 bushels/acre, down 2 bu/a from last month. Corn supplies are projected at 13.6 million bushels, down 190 million bushels from 2008/09. USDA predicts that corn use for feed and residual use will reach 12.5 billion bushels, and, as a result of the reduced production estimates, will exceed production by 525 million bushels this year. Ending stocks are projected at 1.1 billion bushels, down 55 million bushels from USDA’s May estimate. The 2009/10 marketing-year average farm price was projected at $3.90 to $4.70 per bushel, up 20 cents from last month. This compares with $4.10 to $4.30 per bushel for 2008/09. USDA kept its 3.195 billion bushel projection for U.S. soybeans for the new crop, but with exports expected to reach 1.250 billion bushels for the current year, USDA said old crop ending stocks for soybeans will drop to 110 million bushels. Carryout at the end of the 2009/10 year is also projected to be at a relatively low level of 210 million bushels. USDA projected a 1.675 billion bushel crush and a 1.260 billion bushel export business, with the season average price for new crop soybeans raised to the $9 to $11 per bushel range. USDA said U.S. wheat production is down slightly, by 10 million bushels, compared to the May estimate, with total U.S. wheat production projected at 2.016 billion bushels, well under last year’s 2.5 billion bushels and slightly under the previous year. USDA noted, however, that ending wheat stocks will rise slightly because of reduced consumption. The average farmgate wheat price is estimated at $4.90 to $5.90 per bushel, 20 cents higher than May. Projected 2009/10 farm prices for sorghum, barley, and oats were also raised this month.