The USDA confirmed analysts expectations the agency would cut its forecast for US corn production this year after weather delayed planting in key farming regions. Farmers are expected to product just 13.2 billion bushels of corn this year now, a 305 million bushel reduction from USDA’s May forecast.
The corn acre area planted is reduced 1.5 million acres from March intentions, to 90.7 million in the report. Harvested area is reduced by 1.9 million, to 83.2 million acres with the additional 400,000 care reduction reflecting early information about May flooding in the lower Ohio and Mississippi River valleys and June flooding along the Missouri River valley.
Old-crop corn ending stocks are unchanged. New-crop ending stocks were lowered from the may estimate of 900 million bushels to 695 million.
Soybean area and production estimates remain unchanged, as there are several weeks remaining in the planting season. Exports for 2011-12 are reduced, reflecting the export pace to date and reduced global import demand, led mainly by lower projected Chinese imports. USDA now sees 2011 crop ending stocks at 190 million, up from 160 million in May.
USDA’s forecast for U.S. wheat usage this year is unchanged. Ending stocks are projected 15 million bushels lower, at 687 million. All wheat production is forecast at 2.068 billion bushels, 15 million higher than last month. The winter wheat production, at 1.45 billion bushels, is up 26 million bushels or 2 percent from the May forecast.
The production forecast increase in the U.S. is a sharp contrast to falling estimates in Europe as drought conditions continue to choke wheat production in France and Germany.
An 11 million bushel reduction for durum and other spring wheat production as seeding were reduced by 290,000 acres based on flooding and persistent wet soils in North Dakota and Montana.