USDA forecasts 2012 U.S. crop acreage and price

Date:02-27-2012

Projections out of USDA's Ag Outlook Forum call for a big increase in U.S. corn acreage with soybean planted area holding steady.

According to the Ag Department's Chief Economist Joe Glauber, 2012 U.S. corn acreage could hit 94 million acres, the largest since 1944, with beans unchanged at 75 million acres. The corn area is in-line with USDA's baseline projection from earlier in the month and up 2.1 million acres from 2011, while that soybean guess is up 1 million from the baseline and steady on the year.

Wheat planted area is expected to be around 58 million acres, compared to the baseline of 56.5 million and the 2011 total of 54.4 million acres, and cotton is pegged at 13 million acres, down 10% on the year and 7.5% less than the National Cotton Council's estimate.

However, these are USDA estimates and not based on farmer surveys. USDA's prospective planting report, based on farmer surveys, is out March 30.

Corn for ethanol use is estimated at 4.95 billion bushels, compared to USDA's most recent guess of 5 billion.

Additionally, USDA sees the average price for corn next marketing year at $5 per bushel, with soybeans at $11.50, wheat at $6.30, and cotton at $.80 per pound.

Pork prices are expected to see a 1.7% year to year decline, with beef up 9%, milk down 8.9%, and chicken increasing 7%.

Fiscal 2012 ag exports are seen at $131 billion, the second highest on record, including expectations for strong beef and pork demand, and imports are pegged at $106.5 billion.

Full report