Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 6/10/09

Total U.S. corn use, projected at 12.5 billion bushels, is expected to exceed production by 525 million bushels in the 2009/10 marketing year that begins in September, drawing down stocks sharply.

In its monthly World Agricultural Supply and Demand Estimates report, USDA pegged the 2009/10 corn crop at 11.9 billion bushels, down 155 million from last month as late planting in the eastern corn belt is expected to reduce the national average yield by 2 bushels per acre to 153.4.

Ending stocks in 2009/10 of corn are now projected at 1.1 billion bushels, down 55 million from last month and 510 million below the 2008/09 projection.

Projected feed and residual use for 2009/10 is reduced 100 million bushels this month based on lower projections for red meat and poultry production and lower expected residual use due to lower corn yield.

The 2009/10 marketing-year average farm price for corn is now projected at $3.90 to $4.70 per bushel, up 20 cents on both ends of the range and compared to an expected range of $4.10 to 4.30 for 2008/09.

Soybeans

USDA also reduced its soybean supply forecasts and raised soybean and soybean meal price projections for the 2009/10 year.

Lower 2009/10 beginning stocks reflect higher export and crush projections for 2008/09. Soybean exports for 2008/09 are raised to a record 1.25 billion bushels reflecting record sales and increased projected imports for China and reduced soybean exports from Argentina.

Soybean ending stocks for 2008/09 are projected at 110 million bushels, down 20 million from last month. Ending stocks for 2009/10 are also reduced 20 million bushels to 210 million.

The U.S. season-average soybean price for 2009/10 is projected at $9.00 to $11.00 per bushel, up 55 cents on both ends of the range. Soybean meal prices for 2009/10 are projected at $275 to $335 per short ton, up 15 dollars on both ends of the range.

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