Source: Rita Jane Gabbett, MEATINGPLACE, 6/11/19


USDA raised it season average corn price forecast by 50 cents per bushel to $3.80 as late planting reduces corn crop prospects. The agency raised average soybean prices by 15 cents per bushel to $8.25 and raised soybean meal by $5.00 per ton to $295.00.

In its monthly World Agriculture Supply and Demand Estimates report, the agency dropped its U.S. corn production forecast for 2019/20 by 1.4 billion bushels to 13.7 billion, which, if realized, would be the lowest since 2015/16.

With sharply lower supplies, corn use is projected to decline 425 million bushels to 14.3 billion, based on reductions to feed and residual use and exports. With supplies falling more than use, however, ending stocks are projected to decline 810 million bushels to 1.7 billion, which if realized would be the lowest since 2013/14.

“Unprecedented planting delays observed through early June are expected to prevent some plantings and reduce yield prospects,” the report predicted.

Soybeans
Soybean prices are less affected than corn for a couple of reasons.

USDA raised its soybean beginning stocks estimate, reflecting a 75-billion-bushel reduction in projected exports for 2018/19 based on lower-than-expected shipments in May and a lower import forecast for China.

Although adverse weather has significantly slowed soybean planting progress this year, area and production forecasts are unchanged with several weeks remaining in the planting season.

Read the full report here. 

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