Source:  Rita Jane Gabbett, MEATINGPLACE, 7/12/11

USDA lowered its average farm price forecasts for corn and soybeans to reflect increased corn acreage and supplies and reduced soybean usage.

USDA pegged 2011/12 average corn prices in a range of $5.50 to $6.50 per bushel, down 50 cents on both ends of the range. For the 2010/11 year, ending Sept. 1, USDA reduced its corn price forecast to a range of $5.15 to $5.35, down from last month’s forecast of $5.20 to $5.50.

USDA forecast average soybean prices in 2011/12 at $12 to $14 per bushel, down $1 on both ends of the range in its monthly World Agriculture Supply and Demand Estimates report. USDA reduced its 2011/12 soybean meal price forecast to a range of $345 to $375 per ton from last month’s forecast of $375 to $405.   

USDA raised its corn stocks and production estimates to reflect expanded acreage in its recent Acreage report. USDA lowered its soybean usage estimate in part to reflect reduced exports to China.

Corn use for ethanol was raised 50 million bushels to 5.05 billion bushels for 2010/11 and raised 100 million bushels to 5.15 billion bushels for 2011/12 to reflect larger supplies and an improved outlook for ethanol producer margins.

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