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 on Tuesday. The projected US ending corn stocks were decreased by 49 million bushels from 1,674 million bushels to 1625 million bushels by the USDA. The world’s ending corn stocks were projected to decrease by 13.54 million metric tons, from 145.95 mmt down to 132.41 mmt.

2009/2010 US corn supplies were decreased because of lower production. The USDA decreased the estimated yield per acre of corn from 164.2 bushels in October to 162.9 bushels here in November because of unfavorable, wet weather conditions. If obtained, this year’s crop will still be the highest yielding ever and second highest in total production. The world’s corn supplies were projected 2 million tons lower on a decrease of corn beginning stocks, while an increase in world corn production could only partly offset the beginning stocks.

US soybean production for the 2009/2010 crop was increased from 42.4 bushels per acre in October, to 43.3 bushels per acre in November. If soybean yields achieve the USDA projection, the 2009/2010 soybean crop would be a record high. Domestic ending stocks of soybeans were increased by 40 million bushels because of the yield increase. World ending stocks were also increased; by 2.6 million metric tons on increased production from Brazil and other South American countries. Some South American countries, like Argentina, have increased soybean planting area and decreased sunflower planting area.

Slow export sales reduced total exports by 25 million bushels for US wheat. Projected 2009/2010 ending stocks were increased by 21 million bushels, which would be a 10 year high of 885 million bushels if achieved. Worldwide production of wheat was increased by 1.7 million tons, which will certainly cover the reduced world beginning stocks that were projected of 657 million bushels.

The marketing-year average farm price of wheat was narrowed by $.10 on the high and low ends to $4.65-$5.05 while corn’s marketing-year average farm price projection was increased by $.20 to $3.25-$3.85. The marketing-year average farm price of soybeans also increased by $.20 to $8.20-$10.20.

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

-Colvin