US farmers are poised to harvest their second-largest corn crop on record after near-ideal growing weather boosted yields to a record high, the US Agriculture Department said Friday. USDA pegged the corn crop, used to feed livestock and make ethanol, at 13.018 billion bushels, up 8 percent from last year and just a shade smaller than the all-time record crop of 13.038 billion bushels seen in 2007/08.
Corn yields were forecast at a bin-busting 164.2 bushels per acre, up 7 percent from last year and up 9 percent from 2007/08. The data was expected to weigh on futures prices at the Chicago Board of Trade on Friday. Analysts surveyed ahead of the report had expected corn yields of 162.57 bushels per acre, on average, and total production of 12.986 billion bushels.
"What the government is telling us is that we've got a big crop out there. We've just got to get it home now," said Don Roose, analyst with Iowa-based US Commodities. Farmers will harvest a record 3.25 billion bushels of soybeans, USDA projected, up 5 million from last month's estimate and up 10 percent from last year. Soybean yields will be the third-highest on record, USDA said.
Soybean exports for 2009/10 were forecast at a record 1.305 billion bushels, the agency predicted, pointing out Chinese demand would continue to spur shipments. China's total soy imports for 2009/10 were forecast at 39.5 million tonnes, up 1 million tonnes from last month's estimate, and just under the 40.7 million tonnes estimated for 2008/09.
But US wheat exports are expected to be hurt by competition from Canada, the USDA said, raising its estimate of US wheat ending stocks to a 9-year high of 864 million bushels. Farmers may see average wheat prices dip by 28 percent from last year to $4.85 per bushel, the lowest level since 2006/07, the USDA said.
Season-average corn prices were forecast at $3.35 per bushel, down 17 percent from last year, and soybean prices at $9 per bushel, down $1 from 2008/09. USDA said its first forecast for Florida's 2009/10 orange crop was down 16 percent from last season at 136 million (90-lb) boxes. The forecast was well below what traders had expected, sending the benchmark November orange juice futures contract sharply higher.
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