Washington-The latest USDA World Agricultural Supply and Demand Estimates (WASDE) report, released Jan. 12, gave a boost to agriculture markets on news of tighter supplies for corn, soybeans, and wheat. The WASDE report projected ending U.S. corn stocks for 2010/11 at 745 million bushels, down 87 million bushels from last report and 963 million bushels lower than year-ago estimates. The corn stocks-to-use ratio was projected at 5.5 percent, the lowest since 1995/96, while the 2010/11 marketing-year average farm price for corn was projected higher at $4.90-$5.70 per bushel. U.S. oilseed production for 2010/11 was estimated at 100.5 million tons, down 1.2 million tons from last month. Soybean production was estimated at 3.329 billion bushels, down 46 million bushels from last report based on reduced harvested area and lower yields. The soybean yield was estimated at 43.5 bushels/acre, down from last year’s record of 44 bushels/acre. Soybean ending stocks were projected at 140 million bushels, down 25 million from last month. The report projected the 2010/11 U.S. season-average soybean price range at $11.20-$12.20 per bushel. U.S. wheat ending stocks for 2010/11 were projected 40 million bushels lower this month, as a reduction in expected feed and residual use was more than offset by higher projected exports. The marketing-year average price received by wheat producers was projected at $5.50-$5.80 per bushel, up slightly from last month. The U.S. 2010/11 rice crop was estimated at 243.1 million cwt, up 1.5 million, or 0.6 percent from the previous estimate due to increased yields. The average rice yield was estimated at 6,725 pounds/acre, up 56 pounds/acre from last month, but down 360 pounds/acre from the previous year. The U.S. cotton 2010/11 supply and demand estimates showed only minor revisions from last month. U.S. cotton production was raised 47,000 bales, while exports and ending stocks were unchanged from last month. The release of the report prompted midweek rallies in share prices for fertilizer companies such as CF Industries, Agrium Inc., the Mosaic Co., and Potash Corp. of Saskatchewan.
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