Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 1/12/10

USDA boosted its estimates of the 2009-10 corn and soybean crops, but also raised its price forecast for both commodities in its monthly World Supply and Demand Estimates report.

U.S. corn production was estimated at a record 13.2 billion bushels, up 230 million bushels with higher area and yields. Corn ending stocks are now projected at 1.764 billion bushels, up 89 million bushels and the largest since 2005-06.

The 2009-10 marketing-year average corn farm price is projected at $3.40 to $4 per bushel, up 15 cents on both ends of the range based on reported prices to date and continued strength in futures and cash market values.

Soybeans

U.S. soybean production was estimated at a record 3.361 billion bushels, up 42 million bushels from last month based on higher yields. Soybean ending stocks, however, are projected at 245 million bushels, down 10 million from last month due to stronger exports.

The U.S. season-average soybean price range for 2009-10 is now projected at $8.90 to $10.40 per bushel, up 15 cents on both ends of the range. Soybean meal prices are projected at $265 to $315 per short ton, up $5 on both ends of the range.

Futures markets, however, fell on the news of larger cops. March corn sank 30 cents to $3.92 per bushel while March soybeans tumbled 34.5 cents to $9.76 per bushel in morning trade on the Chicago Board of Trade.