The USDA projects wheat price on the 05-06 crop at $3.35 to $3.45 per bushel --- up 10 cents on the lower end and down 5 cents on the upper end from last month.
World corn production is projected at just fractionally higher than last month's report. USDA pegs its estimate at more than 683.7 million metric tons and 24 million metric tons lower than the previous year. World ending stocks are projected at 128 million metric tons.
The USDA estimates the U.S. corn inventory is down slightly from last month due to increased domestic use in ethanol production. Use of corn for ethanol is up 25 million bushels from last month. On the world stage, corn has a competitor for the ethanol market. Brazil is diverting about 52% of its sugar-can crop to ethanol production – up from 48% in 2003.
A narrow corn price range for the rest of the '06 marketing year is projected by the USDA at $1.75 to $2.05 per bushel.
Total supplies of soybeans are currently estimated at more than 267 million metric tons. That's 26 million metric tons more than this time last year.
World ending stocks are projected at 53.83 million metric tons.
USDA projects the soybean price range for this year at between $5.20 and $5.80 per bushel – slightly higher than earlier government guesses.
According to USDA numbers, world cotton stockpiles have risen by nearly 4 percent in the last month – up to 167.8 million bales. Ending supplies are went from just over 51 million bales in January to just under 53 million bales in February.
On the domestic side, this month's U.S. cotton forecast includes slightly lower domestic mill use, which will result in slightly higher ending stocks – at 7 million bales.