Last week, USDA raised its crop forecasts for both corn and soybeans, as well as its ending stocks projections. This of course lead its analysts to sharply cut they're price forecasts for average corn, soybean and soybean meal in the marketing year that began Sept. 1.

In its Crop Production and World Agriculture Supply and Demand Estimates reports, USDA forecast the following:

Corn

  • Corn production at 12.2 billion bushels, up 1 percent from a month ago and the second highest on record
  • Ethanol corn use at 4 billion bushels, down 100 million bushels from its September forecast as reduced gasoline consumption is expected to slow expansion of blending in the coming month
  • Corn ending stocks at 1.154 billion bushels, up 136 million bushels
  • Average corn prices at $4.20 to $5.20 per bushel, down 80 cents on each end of the range

Soybeans

  • Soybean production at 2.98 billion bushels, up 2 percent from last month's forecast and the fourth largest crop on record
  • Soybean ending stocks at 220 million bushels, up 85 million from last month
  • Average soybean prices at $9.60 to 11.10 per bushel, down $2.00 on each end of the range
  • Soybean meal prices at $260 to $320 per short ton, down $70 on both ends of the range

Source: USDA, Meatingplace.com