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2005 Crop Production & Supplies Higher

posted on January 13, 2006

The increase in wheat acreage also is being attributed to intense drought in the southern plains, where dry conditions have fueled a series of wildfires More than 380,000 acres have been scorched in Oklahoma since November 1st, destroying more than 200 homes and killing at least two people. Winter wheat acreage is up in Kansas, Oklahoma and Texas. Nationwide, winter wheat plantings are up 2 percent from last year ... to 41.4 (M) million acres. Some U.S. grain analysts expected a more substantial increase as farmers switch from the more fertilizer-dependent corn acres due to higher energy costs. And if the latest government numbers on U.S. corn production are any indication, a reduction in acreage might be welcome news for growers.

2005 Crop Production & Supplies Higher

USDA's 2005 annual crop production summary featured upward revisions to U.S. corn, soybeans and cotton, while the government's supply and demand report indicated growing world supplies

The numbers were not friendly to grain markets which already had been trending lower, with one notable exception -- nearby wheat prices moved higher Thursday, despite USDA raising it's estimate of world ending stocks to 144.7 (M) million metric tons  up 1.3 million metric tons from December.

In corn, USDA's raised its annual crop production estimate to 11.1 (B) billion bushels. That's up about 80 (M) million bushels from its December estimate ... and follows closely behind last year's record crop as the second largest on record. Corn ending stocks are forecast at 2.4 (B) billion bushels, up 7 (M) million bushels from December.

USDA also upped its projection for soybean production. The 2005 crop is estimated at 3.1 (B) billion bushels, up 43 (M) million bushels from December ... and would be the second largest soybean crop on record. Soybean stocks are forecast at 505 (M) million bushels, up 100 million bushels from December. USDA estimates global soybean ending stocks at 53.2 million metric tons -- up more than 5 million metric tons from last month.

Meanwhile, USDA cut export projections for both corn and beans  taking corn down to 1.9 (B) billion bushels and soybeans down to 950 (M) million bushels.

And U.S. cotton production is estimated at a record high of 23.7 (M) million bales. But the cotton yield is expected to average 831 pounds per acre, down 24 pounds per acre from last year.

Tags: agriculture crops markets news soybeans USDA