USDA Supply & Demand Report

USDA’s supply and demand report showed that U.S. wheat for 2008/09 came out at 669 million bushels, unchanged from May’s update. The average farm price for wheat is estimated at $6.85 per bushel, compared to $6.48 for 2007/08. For 2009/10 U.S. wheat ending stocks were reported at 647 million bushels, up 10 million from the last update and larger than expected before the report.

USDA now sees total production at 2.016 billion bushels, down 10 million from May, bringing total supply to 2.8 billion bushels.

Corn stocks for 2008/09 were pegged at 1.600 billion bushels, unchanged from May. The average 2008/09 farm price is estimated at $4.10 to $4.30 per bushel, compared to $4.20 in 2007/08. Corn ending stocks came out at 1.090 billion bushels, compared to 1.145 billion a month ago. USDA didn’t change it’s planted and harvested area estimates, but did lower the expected average yield by 2 bushels to 153.4 bushels per acre, taking production to 11.935 billion and total supply to 13.550 billion.

Soybean ending stocks were reported at 110 million bushels, down 20 million from May’s projection. The average farm price for the current marketing year is estimated at $10 per bushel, compared to $10.10 for 2007/08. For 2009/10 soybean ending stocks were placed at 210 million bushels, compared to 230 million a month ago. USDA didn’t make any changes to the production portion of the balance sheet but with corn planting delays, the end of the month report should have some revisions.