The USDA updated the U.S. 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. Forecasted US corn ending stocks for 2009/10 increased on higher production due to higher planted and harvested acres. The USDA also increased the 09/10 yield forecast for corn to 165.2 bushels per acre from 162.9 bushels per acre. The highest year on record was 2004’s 160.4 bushels per acre. Wheat ending stocks were increased by 8%, while soybean ending stocks were decreased by 4%, according to the report.

Estimated corn ending stocks were increased by 5%, or 89 million bushels, to 1.764 billion bushels by the USDA. The increase in ending stocks is due to higher production and record yields. The USDA increased its 2009/10 farm price for corn at $3.40 to $4.00 per bushel, up 15 cents on both the high and low ends.

The increase of corn production comes as a surprise to many. It is difficult to believe that the U.S. corn crop faired so well under such wet conditions during spring planting and the wet harvest across the nation. The USDA has announced that they will resurvey corn producers since the WASDE conflicts with many pre-report figures, but this resurvey did not stop a limit down in CBOT corn on Tuesday.

Although corn still stands in many fields across the U.S., CBOT corn was limit down because of the unexpected estimated increase in ending stocks and increased production, including record yields. March corn ended down 30 cents to $3.92 1/2 per bushel on Tuesday.

US wheat’s estimated farm price for the 2009/10 season was solidified by the USDA to a range of $4.70 to $5.00 per bushel from $4.65 to $5.05. The midpoint in price at $4.85 per bushel is $1.93 below last year’s estimated price of $6.78. The USDA forecasted 2009/10 ending stocks of wheat to increase by 8% to 976 million bushels because of a slight decrease in exports.

The USDA forecasted an increase in soybean yields from 43.3 bushels per acre to 44.0 bushels per acre. Although soybean ending stocks were estimated to decrease by 4%, or 245 million bushels, because of a 3% increase in soybean exports and 17 million more bushels expected for domestic consumption. The farm price for the 2009/10 soybean crop was increased to $8.90 to $10.40 per bushel, from $8.75 to $10.25.

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

-Colvin