Corn, wheat lowered while soybean production is up, according to monthly USDA reports
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WASHINGTON, October 11, 2012 - U.S. corn production is slightly lowered this month, but down 13 percent from its 2011 levels, while U.S. wheat ending stocks for 2012/13 are lowered 44 million bushels, according to the monthly World Agricultural Supply and Demand Estimates (WASDE) and Crop Production reports released by the USDA today. Both commodities are affected by the record-setting drought this summer.
Global wheat supplies for 2012/13 are also lowered, by 6.1 million tons. This is mostly due to decreased production in Russia, Australia, and EU-27. World ending stocks are projected 3.7 million tons lower, mostly due to reductions for the U.S., Russia, and Australia.
U.S. corn production, forecast at 10.7 million bushels, could prove to be the lowest average yield since 1995. Though the drought can be held mostly responsible, robust competition from Brazil also plays a role. U.S. corn use is also lowered, with a100-million-bushel reduction in projected exports. Globally, coarse grains supplies for 2012/13, including corn, are projected 11 million tons lower.
U.S. soybean production is up 9 percent to 2.86 billion bushels, though it is still down 8 percent from last year. The elevated production is explained by a higher harvested area and yield. U.S. soybean exports for 2012/13 are raised to 1.265 billion due to “increased supplies, lower prices, and the record pace of export sales through early October,” according to WASDE. Global soybean production is up 6.2 million tons to 264.3 million. Increased U.S. production is mostly responsible for this spike.
U.S. rice production is up 2.5 million from September, “entirely due to the higher yield,” according to WASDE. Record yields are expected for a number of States, including Arkansas, Louisiana, and Kansas. Globally, the use of rice for 2012/13 is raised “more than the increase in total supplies.” As a result, there is slight decline in world ending stocks. Increased global production is mostly due to a 1-million-ton increase in India's crop, explained by late-season monsoons in the rice producing regions of that country.
The full report can be accessed here.