USDA forecast the 2008 U.S. corn crop at 12.3 billion bushels, the second-largest corn crop in history and well above the average trade estimate of about 11.94 billion bushels, sending corn prices lower on the Chicago Board of Trade Tuesday morning.
As a result of the anticipated larger crop, USDA is now projecting ending U.S. corn stocks at 1.1 billion bushels, up 301 million bushels from last month. USDA also lowered its season-average farm price forecast for corn to a range of $4.90 to $5.90 per bushel, down by 60 cents on both ends of the range.
The new forecasts, contained in USDA’s Crop Production and World Supply and Demand reports issued this morning, are good news for livestock producers and meat processors, who have been hit by rising feed grain costs, in part driven by concerns about the size of this year’s crop after June floods in key growing areas. Near ideal conditions in July and so far in August have improved crop prospects.
Soybeans
USDA forecast the U.S. soybean crop at 2.97 billion bushels, basically in line with trade estimates and putting the crop up 15 percent from last year, but down 7 percent from record high production in 2006.
USDA lowered its forecast for the U.S. season-average price for soybeans to a range of $11.50 to $13 per bushel, down 50 cents on both ends of the range. It cut its soybean meal price projection to $330 to $390 per short ton, down $25 on both ends of the range.
Source: MeatingPlace.com, August 12, 2008
By Janie Gabbett