Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 5/11/11

USDA predicted U.S. farmers will produce a record 13.5 billion bushels of corn in the 2011/12 crop year, up 1.1 billion from 2010/11 as a 4-million-acre increase in intended plantings and a recovery from last year’s weather-reduced yields boost expected output.

In its monthly World Agricultural Supply and Demand Estimates report USDA also, however, predicted the 2011/12 season-average farm price for corn at a record $5.50 to $6.50 per bushel compared with the 2010/11 forecast of $5.10 to $5.40 per bushel, as overall corn supplies will remain low.

USDA beat market analyst estimates, however, for corn ending stocks. The report put ending stocks for 2010/11 at 730 million bushels, compared to an average analyst estimate of 661 million bushels. It predicted 2011/12 ending stocks at 900 million bushels, while analysts were expecting, on average, 808 million bushels, according to a Dow Jones analyst survey.

Corn stocks still remain historically tight, with the stocks-to-use ratio projected at just 6.7 percent in 2011/12 compared with the current-year projection of just 5.4 percent.

USDA raised its forecast of corn use for ethanol by 50 million bushels for 2011/12 compared to 2010/11 to 5.05 billion bushels, but predicted lowered exports and feed and residual use year over year.

Soybeans
USDA predicted 2011/12 U.S. soybean production at 3.285 billion bushels, down 44 million from the 2010/11 crop, mostly due to lower harvested area.

The U.S. season-average soybean price for 2011/12 is projected at $12.00 to $14.00 per bushel compared with $11.40 per bushel in 2010/11.

Soybean meal prices are forecast at $350 to $380 per short ton, compared with $350 per ton for 2010/11.
To view the full report click here.

For more stories, go to www.meatingplace.com.