Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 8/12/09

In its first crop estimates based on field surveys, USDA predicted a 12.8-billion-bushel U.S. corn crop, up 5 percent from last year and just 2 percent behind the record crop in 2007.

Market analysts were expecting the crop to come in just below 12.5 billion bushels, according to a Dow Jones survey. The USDA report was based on field conditions Aug. 1.

USDA lowered its average farm price for corn in the 2009/10 marketing year that begins Sept. 1 to a range of $3.10 to $3.90 from an earlier range of $3.35 to $4.15.

In a separate report, USDA boosted its feed and residual use forecast for corn by 100 million bushels to 5.3 billion bushels, saying that despite reduced prospects for livestock production, the higher yield and production are expected to add to residual loss.

In its World Supply and Demand Estimates report, USDA also boosted ethanol use by 100 million bushels to 4.2 billion bushels, supported by favorable ethanol producer returns and strong incentives for ethanol blending.

Soybeans

USDA matched market expectation with a 3.2-billion-bushel soybean crop forecast. However, the forecast was a slight decline from last month's 3.26-billion-bushel forecast and USDA slightly raised its price forecasts for soybeans and soybean meal.

USDA now forecasts average soybean farm prices in the marketing year that begins Sept. 1 to range from $8.40 to $10.40 compared to $8.30 to $10.30 last month. It raised its soybean meal average price forecast to a range of $260 to $3.20 per ton from $255 to $315 per ton forecast in July.