Chad Hart , ISU Extension Grain Marketing Specialist, provides a summary of the latest crop report from USDA.
This morning’s USDA reports show very small changes in the crop outlook. As expected, corn and soybean yields and production are left unchanged. The 2010 crops still rank as the 3rd largest corn crop and the largest soybean crop the country has ever produced.
For corn, the only change made in the outlook is to corn imports. The U.S. does import a small amount of corn. This report raises that amount by 5 million bushels, up to 15 million. All other supply and demand categories are held steady. So feed demand remains at 5.3 billion bushels, ethanol demand is at 4.8 billion bushels, and exports are at 1.95 billion bushels. The slight shift in imports raises 2010/11 ending stocks to 832 million bushels. Corn prices are also the same as last month, with a range between $4.80 and $5.60 per bushel.
For soybeans, the only change made in the outlook is to exports. The report shows another 20 million bushels leaving the country, strengthening the already record pace for soybean exports. The increase in exports drops 2010/11 ending stocks to 165 million bushels. But like with corn, the shift is not enough to move USDA’s price projections. The 2010/11 season average price range is held steady at $10.70-$12.20 per bushel.
Looking at South American crop projections, the reports are unchanged there as well. So the crop picture today looks like it did last month, strong demands and limited ending stocks as we move through the marketing year. The futures markets will digest these reports and be looking for other news quickly.
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