WASDE: US corn projections lowered

By | June 03, 2009
Report posted June 11, 2009, at 2:08 p.m. CST

Lower than previously expected U.S. corn production will be responsible for half of the reduction in 2009-10 global corn stocks, according to the June 10 USDA World Agricultural Supply and Demand Estimates report. Global corn ending stocks are now projected at 125.5 million tons, down 13.1 million tons from the 2008-'09 estimate.

Total projections for U.S. corn production in 2009-'10 were reduced to 11.9 billion bushels. Poor weather conditions in parts of the country during the spring planting season have led to reduced prospects for corn yields and production. However, the report credited early planting in the western Corn Belt and improved crop conditions compared to the same time last year for offsetting poor early crop conditions elsewhere in the country.

As a consequence of reduced production estimates, the USDA predicts that corn use for feed and residual use will exceed production by 525 million bushels this year. Ending stocks are projected at 1.1 billion bushels, down 55 million bushels from the USDA's May estimate.

The full WASDE report can be viewed at http://www.usda.gov/oce/commodity/wasde/latest.txt.