- USDA is projecting smaller crops for cotton, rice and soybeans and bigger production for corn.
- Cotton's reduction in estimated production is accompanied by an expected decline in exports, due to weakening demand.
- World cotton stocks are recovering from the tight situation of the last two years, but the stocks to use ratio is still the lowest in 15 years.
Corn production for 2011-12 is projected at 13.47 billion bushels, 270 million bushels higher than last month based on estimated area. Feed and residual use for 2011-12 was raised 50 million bushels, and corn use for ethanol was raised 100 million bushels with larger supplies and an improved outlook for ethanol producer margins.
Estimated corn exports were raised 100 million bushels mostly reflecting increased demand from China. Ending stocks for 2011-12 were projected 175 million bushels higher at 870 million. Ending stocks for 2010-11 were raised 150 million bushels to 880 million.