Corn
U.S. feed grain ending stocks for 2011-2012 are projected slightly higher with a small decrease in domestic corn use and a small increase in oats imports. Corn food, seed and industrial use is lowered 5 million bushels with early marketing-year corn use for sweeteners down slightly year on year. Projected corn ending stocks rise 5 million bushels to 848 million.
The 2011-2012 season-average farm price for corn is projected 30¢ lower on each end of the range to $5.90-6.90/bu. Corn prices received by producers have been reported 40-50¢/bu. below prevailing cash market bids reflecting apparent deliveries of grain that was forward priced below $6/bu. ahead of planting this past spring. Declines in futures prices since early November have also tempered the outlook for seasonal price gains over the coming months.
Global coarse grain supplies for 2011-2012 are projected 7.4 million tons higher as lower beginning stocks for corn and barley are more than offset by an 8.5-million-ton increase in corn production, mostly reflecting higher output from China. Global corn beginning stocks for 2011-2012 are reduced 0.8 million tons, with a downward revision to 2010-2011 production for South Africa.
Global corn production for 2011-2012 is projected at a new record high of 867.5 million tons, despite a 3.5-million-ton decline year-to-year in the U.S. Foreign corn production is expected to be up 43.4 million tons from 2010-2011. China 2011-2012 production is raised 7.3 million tons this month based on the recently released estimate from the National Bureau of Statistics. Slightly higher area and a 3% increase in yields from the previous forecast boost this year’s crop to a record 191.8 million tons. This year’s yield estimate is up 3% (3 bu./acre) from the previous record in 2008-2009 and up 9% (8 bu.) from the recent low in 2009-2010. Weather was generally favorable for this year’s crop; record yields were reported despite summer conditions in the northeast growing areas that were somewhat warmer and drier than in 2008-2009. Corn production is also raised 1.0 million tons for EU-27 and 0.7 million tons for Canada based on the latest government reports.
World coarse grain trade for 2011-2012 is mostly unchanged this month with corn and sorghum imports and exports down slightly, but partly offset by small increases for barley. Corn imports are lowered 0.5 million tons for EU-27 with the larger crop and lower expected shipments from Serbia. Global corn consumption is raised mostly reflecting a 2.0-million-ton increase in China corn feeding. Global corn ending stocks are projected 5.6 million tons higher, mostly on increased stocks in China. At the projected 127.2 million tons, world ending stocks remain at a five-year low.
Total U.S. oilseed production for 2011-2012 is projected at 91.0 million tons, down slightly due to a small reduction in cottonseed. Soybean exports are reduced 25 million bushels to 1.3 billion reflecting the slow pace of shipments and outstanding sales through November, and strong export competition from South America. Projected soybean crush is reduced 10 million bushels to 1.625 billion due to reduced domestic soybean meal consumption and a higher meal extraction rate. Soybean ending stocks for 2011-2012 are projected at 230 million bushels, up 35 million from last month.
Prices for soybeans and products are all projected lower this month. The U.S. season-average soybean price range for 2011-2012 is projected at $10.70-12.70/bu., down 90¢ on both ends of the range. The soybean meal price is projected at $280-310/short ton, down $30 on both ends of the range. The soybean oil price range is projected at 50.5-54.5¢/lb., down 2.5¢ on both ends of the range.
Global oilseed production for 2011-2012 is projected at 457.6 million tons, up 2.8 million tons from last month. Foreign oilseed production accounts for most of the change with increases projected for soybeans, rapeseed, sunflower seed and peanuts. Global soybean production is projected at 259.2 million tons, up 0.3 million. Increased production for Canada and India is only partly offset by a lower projection for China.
Global oilseed trade is projected at 114 million tons, up 0.7 million from last month. Increased soybean exports from Brazil, increased rapeseed and soybean exports from Canada, and increased peanut exports from China and India account for most of the gains. Global oilseed ending stocks are projected at 75.5 million tons, up 1.6 million from last month mainly reflecting increased soybean stocks in the U.S. and increased rapeseed stocks in Canada.