Source: Rita Jane Gabbett, MEATINGPLACE, 11/11/15


USDA lowered its corn price forecast for the 2015/16 marketing year that began in September to a range of $3.35 to $3.95, down 15 cents per bushel on both ends of the range from last month’s forecast.

In its monthly World Agriculture Supply and Demand Estimates report, USDA pegged the U.S. corn-to-use ratio at 12.9 percent, up from 11.3 percent last month. Translation: More corn equals cheaper corn.

One reason for the larger corn supplies is a 75-million-bushel reduction in expected corn use for ethanol, as refiners switch to sorghum as a cheaper fuel source. U.S. corn export sales are also lagging due to cheaper corn from Brazil on the market.

Soybeans
Similarly, USDA lowered its soybean price forecast, as it raised its soybean stock outlook by 2 percent.

USDA now projects the U.S. season average soybean price range at $8.15 to $9.65 per bushel, down 25 cents on both ends of the range.

Soybean meal prices are projected at $300 to $340 per short ton, down $10 on both ends.

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