Source: MEATINGPLACE, 11/9/11

USDA reduced slightly its forecast for the U.S. corn crop on Wednesday, projecting the lowest national average yield since 2003.
Despite the smaller crop, December corn futures were unchanged at about $6.60 per bushel at midday on the Chicago Board of Trade.

USDA forecast corn production for 2011-12 at 123 million bushels lower, and the yield 1.4 billion bushels per acre below last month. At 146.7 bushels per acre, this year’s yield would be the lowest since 2003-04, USDA said. Projected U.S. ending stocks were lowered 23 million bushels.

Corn production, at 12.31 billion bushels, was below analysts’ average estimate of 12.40 billion bushels, according to Deutsche Bank.

Corn feed and residual use was lowered 100 million bushels with the smaller crop and further reductions in the outlook for broiler production. Projected U.S. corn ending stocks were lowered 23 million bushels.

The season-average farm price for corn was unchanged at $6.20 to $7.20 per bushel.

Soybean production of 3.046 billion bushels was below the consensus estimate of 3.059 billion bushels. The soybean yield was reduced slightly to 41.3 bushels per acre from 41.5 billion bushels

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