U.S. corn ending stocks for 2008/2009 are projected 316 million bushels higher this month on higher
estimated production and lower expected use, according to USDA.  Corn production for 2008/2009 is estimated 81 million bushels higher.  Feed and residual use is reduced 50 million bushels reflecting lower animal numbers and September-November disappearance as indicated by December 1 stocks.  

Ethanol corn use is lowered 100 million bushels as sustained negative ethanol production
margins since early December have reduced incentives for ethanol output.  Corn exports are projected 50 million bushels lower based on the slow pace of sales and shipments to date.  The projected
season-average farm price for corn is lowered 10 cents on each end of the range to $3.55 to $4.25 per bushel.

U.S. soybean production is estimated at 2.959 billion bushels, up 39 million bushels from last month based on both higher yields and harvested area.  The soybean yield is estimated at 39.6 bushels per acre.  Soybean exports are raised 50 million bushels to 1.1 billion due to strong sales and shipments to China. 

Projected soybean crush is reduced 30 million bushels to 1.685 billion bushels reflecting sharply reduced domestic soybean meal consumption.  Soybean ending stocks are projected at 225 million bushels, up 20 million. Lower soybean oil production is more than offset by reduced
domestic consumption and exports, leaving projected soybean oil stocks at 2.1 billion pounds, up 110 million from last month.

The U.S. season-average soybean price range for 2008/2009 is projected at $8.50 to $9.50 per bushel compared with $8.25 to $9.75 per bushel last month.  Soybean oil prices are forecast at 32 to 35 cents per pound, up 1 cent on the bottom of the range. Soybean meal prices are projected at $250 to $310 per short ton, up $10 on both ends of the range.

Projected U.S. wheat ending stocks for 2008/2009 are raised 32 million bushels this month with lower projected domestic use.  Feed and residual use is projected 30 million bushels lower as December 1 stocks, reported in the January Grain Stocks, indicate lower-than-expected feed and residual
use during September-November.  The projected season-average farm price for wheat is narrowed 10 cents on both ends of the range to $6.50 to $6.90 per bushel. Global 2008/09 wheat production is projected at 682.9 million tons, down 1.1 million from last month. 

World wheat consumption for 2008/2009 is lowered this month. World wheat feeding is lowered 1.3 million tons on reduced feeding for the United States and South Korea. 

Sorghum ending stocks for 2008/2009 are increased 27 million bushels on higher estimated production and lower expected feed and residual use. The sorghum season-average farm price range is lowered 10 cents on both ends of the range to $2.90 to $3.50 per bushel.

The barley farm price is narrowed 10 cents on each end of the range to $4.95 to $5.35 per bushel.  The oats price is raised 10 cents on each end of the range to $2.90 to $3.10 per bushel based on producer prices to date.

For a copy of the report, click here.

Source: USDA