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 U.S. corn ending stocks for 2009/10 decreased by 3% on increased ethanol and food use. The USDA maintained the 09/10 yield forecast for corn at 165.2 bushels per acre, which is 2.99% above the 2004 current yield record. Wheat ending stocks were increased by 5 million bushels, while soybean ending stocks were decreased by 35 million bushels or 14%, according to the report.

Estimated U.S. corn ending stocks were decreased by 3% by the USDA on an increase in ethanol and food use. Ethanol use was estimated to increase by 100 million bushels. The increase in ending stocks was partially offset by a decrease in corn exports. The USDA maintained its 2009/10 farm price for corn at its midpoint of $3.70 per bushel.

U.S. wheat’s estimated farm price for the 2009/10 season was maintained again by the USDA at a midpoint of $4.85 per bushel. The USDA forecasted 2009/10 U.S. ending stocks of wheat to increase by less than 1%, or 5 million bushels due to a slight increase in imports.

The USDA estimated 2009/10 U.S. soybean ending stocks to decrease by 14%, or 35 million bushels from last month because of increased soybean exports and crush. Exports were increased by 25 million bushels. South America is expecting a record soybean crop, but South American supplies are still tight from last year’s horrific drought in Argentina. The farm price for the 2009/10 soybean crop was decreased by 20 cents to a midpoint of $9.45 per bushel.

Keep a look out for the March 10^th WASDE Report here at Farmland Forecast. The USDA should be reporting on their re-survey of U.S. crops. We forecast there will be a decrease in corn yield and total production due to the wet and delayed harvest across much of the Midwest.

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

-Colvin