In its monthly World Agricultural Supply and Demand Estimates report, the agency consequently lowered its price forecasts for corn, soybeans and soybean meal.
Corn production is now forecast at 10.7 billion bushels, up slightly from the October forecast but down 13 percent from 2011 and still the lowest production in the United States since 2006.
Soybean production is forecast at 2.97 billion bushels, up 4 percent from October but down 4 percent from last year.
USDA now projects corn prices will average $6.95 to $8.25 per bushel in the marketing year that began in September, down from a range of $7.10 to $8.50 forecast last month.
Soybean prices are now forecast at $13.90 to $15.90 per bushel, compared to range of $14.25 to $16.25 a month ago, while soybean meal prices are now pegged at $455 to $485 per ton, down from $470 to $500 projected last month.
While reduced, these prices are still well above historical norms and continue to squeeze margins for poultry and meat processors.
Source: meatingplace.com, 11.9.12