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Corn prices decline as USDA predicts big crop
Story Date: 5/11/2012
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Source: Rita Jane Gabbett, MEATINGPLACE, 5/10/12
Corn futures prices fell this morning as USDA predicted a record U.S. corn crop of 14.8 billion bushels, up 2.4 billion bushels from last year and enough to shore up short supplies that have driven prices higher in recent years.
In its first forecast for the 2012/13 marketing season, USDA predicted an additional 5 million acres will be harvested this year and despite a 16-year low in carry-in corn stocks, corn supplies should grow to a record 15.7 billion bushels after this year’s crop is harvested.
In its first 2012/13 price prediction for the new crop year, USDA forecasted the season-average farm price for corn at $4.20 to $5.00 per bushel, down sharply from the 2011/12 record projected at $5.95 to $6.25 per bushel.
Projected corn use for ethanol is unchanged on the year at 5 billion bushels, as weak gasoline consumption limits domestic blending opportunities.
Corn futures prices fell sharply in early trade on the Chicago Board of Trade, then leveled out some, trading down about 6 cents to down about 10 cents per bushel for delivery between this month and next May.
Soybeans
USDA predicted this year’s soybean crop at 3.205 billion bushels, up from the 2011 crop as higher yields more than offset lower harvested area.
Still, the report came in below market analysts’ expectations on available soybean stocks, pushing soybean futures prices higher in morning trade.
The U.S. season-average soybean price for 2012/13 is projected at $12.00 to $14.00 per bushel compared with $12.35 per bushel in 2011/12. Soybean meal prices are forecast at $335 to $365 per short ton, compared with $360.
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