On Friday the USDA updated the US and World 2008/09 and 2009/10 balance sheet estimates for major agricultural commodities in the World Agricultural Supply and Demand Estimates (WASDE) report. The USDA raised its yield forecast for the 2009/10 corn crop to 164.2 bushels per acre from 161.9 bushels per acre back in September. If these estimates are achieved, the 2009 corn crop will be the highest yielding and second largest in history.

The USDA reduced 2009/10 corn beginning stocks as higher corn use for ethanol, sweeteners, starch, and exports boosted June-August use. On the other hand, the USDA raised their estimate for U.S. corn ending stocks for 2009/10 by 32 million bushels to 1.672 billion bushels from September’s 1.635 billion bushels. The USDA kept the 2009/10 season-average farm price for corn steady at $3.05 to $3.65 per bushel.

The production outlook is a different story according to private analytical firm Lanworth, who projects a harvest of 12.2 billion bushels. "We have been consistently telling our customers this is going to be a good crop. It's a big one, it's a nice one, it'll be second largest on record, but we are continuing not to foresee the making of a record year," Lanworth told DTN The Progressive Farmer.

U.S. soybean ending stocks for 2009/10 were higher by 10 million bushels to 230 million due to an increase in yield per acre of 42.4. The USDA decreased soybean prices for the 2009-10 crop to $8.00 to $10.00 per bushel, down 10 cents from last month's forecast.

The USDA raised its forecast of wheat ending stocks for the 2009/10 crop by 121 million bushels to 864 million bushels, which is over a 31% increase from last year's estimated ending stocks. The USDA lowered its average farm price range for the 2009/10 crop to $4.55-$5.15 per bushel, from $4.70-$5.50 per bushel due to the increase in ending stocks.

Click on the link for the full WASDE report: http://www.usda.gov/oce/commodity/wasde/.

- Colvin