October USDA corn, soybean estimates

The following tables present the October USDA estimates for the 2010 corn and soybean harvests and disposition of products. The major change is the 4% downward estimate in yield of corn which was reflected in a 15% increase in the CBT which soared over three trading sessions following release of the report. The corn harvest is however proceeding ahead of the level attained in the two preceding harvests. The lower production forecast and higher projected domestic use will sharply reduce ending stocks now projected at 902 million bushels. USDA estimates the season-average farm price at $4.60 to $5.40/bushel, approximately 60¢ up on both ends of the range.

The production of soybeans is forecast at 3,408 billion bushels and is down by 2.2% from the previous forecast based on lower harvested area and yield. The soybean price has risen probably in tandem with corn but the price also reflects international demand.
The USDA October forecast is expected to be revised in November as the rise in the corn price represents serious financial implications for livestock producers marketing products into an economy in recession.