Corn, Soybean Prices Increased Slightly by USDA

Aug. 12, 1999

USDA increased slightly the expected farm prices for corn and soybeans in the latest supply and demand report issued this morning. Wheat farm prices remained the same as they were in the July report - $2.45-2.95 per bushel for 1999-2000. However, the expected total wheat production was decreased slightly.

Expected corn production this year was lowered, from 9.65 billion bushels in July to 9.56 billion bushels in today's report. Some analysts, though, warned that the trade had been expecting a bigger cut. The projected farm price now is $1.70-2.10 per bushel compared to $1.65-2.05 in the July report.

Soybean production now is projected to total 3.26 billion bushels compared to 3.33 billion in the July report. The farm price in today's report is forecast to average $4.10-4.90 per bushel compared to $3.90-4.70 in the July report.

All wheat production now is expected to total 2.32 billion bushels compared to 2.33 billion in July. Based on Aug. 1 conditions, USDA says, the yield is expected to average 42.5 bushels per acre, a decrease of 0.2 bushels from last month.

Reduced soybean supplies and firmer soybean meal prices this month should reduce soybean meal exports in 1999-2000, says USDA. Still, soybean meal exports, projected at 8 million short tons, are ahead sharply of the year-earlier levels, aided by expectations for lower soybean crops in other countries and stronger demand.

Beef production forecasts both for 1999 and 2000 were increased in today's report as the number of calves reported in the July1 cattle report indicated larger placements and marketings than projected in July. Production also will be increased by continued heavy cattle weights. Pork and poultry supply and use expectations were little changed in today's report compared with the July projections.

Demand for dairy products remains strong. The demand for milkfat has resulted in higher than anticipated milk prices, so USDA has increased the expected milk prices. Total supply and use forecasts are changed little, but stock levels are increased based on recent reports by the Naitonal Agricultural Statistics Service.