Source:  Rita Jane Gabbett, MEATINGPLACE, 6/9/11

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USDA raised its 2011-'12 average farm price forecast for corn to $6 to $7 from last month’s $5.50 to $6.50 on expected lower acres, production and ending stock as spring floods delayed planting in key production states.

In its World Agriculture Supply and Demand Estimates report, USDA forecast corn stocks on Sept. 1, 2011 at 730 million bushels and Sept. 1, 2012 stocks at 695 million bushels. Market analysts on average were expecting stocks at 715 million and 800 million, respectively, according to a Dow Jones poll.

USDA lowered its estimate of U.S. corn planted area by 1.5 million acres from the March Planting Intentions report, to 90.7 million acres, noting planting delays through early June in the eastern Corn Belt and northern Plains.

The agency lowered its corn harvested area by 1.9 million acres, to 83.2 million, with the additional 400,000-acre reduction reflecting early information about May flooding in the lower Ohio and Mississippi River valleys and June flooding along the Missouri River valley.

USDA reduced its corn production forecast by 305 million bushels to 13.2 billion bushels, which would still be a record.

Corn feed and residual use was cut by 100 million bushels to 5 billion bushels.

Corn prices on the Chicago Board of trade jumped on the news, with futures contracts for July 2011 delivery hitting $7.85 per bushel and contracts for July 2012 delivery hitting $7.37 in morning trade.  

Soybeans
USDA raised its projected U.S. season-average soybean price in 2011-'12 to a range of $13 to $15 per bushel, up $1 on both ends of the range.

Soybean meal prices for 2011-'12 are projected at $375 to $405 per short ton, up $25 on both ends of the range.