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USDA lowers corn, soybean price projections
Story Date: 3/11/2013
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Source: Rita Jane Gabbett, MEATINGPLACE, 3/8/13
USDA lowered its season-average farm price forecast for corn by 20 cents on the high end of the range to $6.75 to $7.45 per bushel in its latest World Agriculture Supply and Demand Estimates report.
U.S. corn ending stocks are unchanged this month as an increase in imports and lower exports support higher expected feed and residual disappearance. Corn imports are raised 25 million bushels reflecting the strong pace of shipments reported through January.
Corn exports are lowered 75 million bushels based on the slow pace of sales and shipments to date and stronger expected competition from South American corn and from competitively priced feed quality wheat.
Feed and residual disappearance for corn is raised an offsetting 100 million bushels with continued expansion in poultry production and a 10-million-bushel reduction in projected sorghum feed and residual use.
Soybeans
USDA narrowed its projected season-average price range for soybeans by 25 cents on both ends of the range to $13.80 to $14.80 per bushel. Soybean meal prices are now projected at $425 to $445 per short ton, down 10 dollars at the midpoint.
U.S. soybean supply and use projections for 2012/13 are unchanged this month, leaving ending stocks at 125 million bushels. Although soybean export commitments through February exceeded last year’s pace, U.S. exports are expected to decline in the months ahead as increased competition from a record South American soybean crop limits additional U.S. sales during the second half of the marketing year.
Soybean crush is also ahead of last year’s pace, but is projected to slow in the second half of the marketing year on declining soybean meal exports as competition from South America, especially Argentina, increases with the new-crop harvest.
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