Crop News update

Corn Update
WASDE Update
There weren’t many changes in the U.S.
Department of Agriculture’s December
estimates for corn. Ending stocks were
raised by 50 million bushels, as exports
were lowered by the same. This puts
corn ending stocks at nearly the same
level they were in 2008/2009. All other
estimates (production, yield, use, and
price) remained unchanged from
USDA’s November estimates.
Issue Update
EPA Delays Ethanol Blend Assessment –
EPA announced this week that it is
delaying a decision on whether to allow
higher blends of ethanol in gasoline until
mid-2010. EPA did suggest, however, that preliminary testing indicates that newer engines can
handle more of the additive. A final decision will not come until next summer when the Energy
Department is expected to finish testing the long-term environmental impact of higher ethanol
blends. But, tests so far show that model year 2001 and newer vehicles will "likely be able to
accommodate higher ethanol blends," such as a 15 percent limit requested by Growth Energy and
ethanol manufacturers.
European Commission Backs Food Imports with GMO Corn – The European Commission
approved food imports containing the genetically modified corn MIR604. It is expected that this
move will eventually allow the resumption of soybean imports from the United States, which have
2007/08 2008/ 09
Actual Estimate November December
Planted Area 93.5 86.0 86.4 86.4
Harvested Area 86.5 78.6 79.3 79.3
Bushels 150.7 153.9 162.9 162.9
Production 13,038 12,101 12,921 12,921
Total Supply 14,362 13,739 14,605 14,605
Feed & Residual 5,913 5,254 5,400 5,400
Ethanol for Fuel 3,049 3,677 4,200 4,200
Exports 2,437 1,858 2,100 2,050
Total Use 12,737 12,065 12,980 12,930
Ending Stocks 1,624 1,674 1,625 1,675
U.S. Corn Supply and Use
2009/10 Projection
Million Acres
Yield per Acre
Million Bushels
been on hold since June because of the EU’s zero tolerance policy on the presence of unapproved
GMO varieties. Earlier in November, EU member states failed to give a majority in favor or against
the GM corn MIR604, despite the urging of the Commission, amid concerns that beef and dairy
prices in the EU could spiral upward and shortages could occur because of the embargo on
soybeans from the United States. Because EU member states failed to reach a decision, the issue
reverted back to the Commission.
Soybean Update
WASDE Update
While production estimates remained
unchanged, U.S. soybean exports were
raised by 15 million bushels to 1.34
billion bushels. Most analysts, however,
were expecting a larger increase (along
the lines of 20 to 25 million bushels)
from USDA this month due to the record
export pace seen in recent weeks for
beans. The increased demand for beans
also raised USDA’s projections for
soybean prices to a range of $8.75 to
$10.25 per bushel.
Issue Update
House Approves A One-Year Extension of the Biodiesel Tax Incentive - The House approved the
Tax Extenders Act of 2009 (HR 4213) that includes a one-year extension (through December 31,
2010) of the biodiesel tax incentive. The bill faces an uncertain outlook in the Senate. The House
passed the extenders bill by a vote of 241-185, largely along party lines. The biodiesel tax incentive
is currently set to expire on December 31, 2009. Most proponents claim that production will cease
if the tax incentive is not extended.
Wheat Update
WASDE Update
U.S. wheat production estimates
remained unchanged from last month.
Wheat use, however, saw some
adjustments as food use was lowered to
15 million bushels. This raised ending
stocks to 900 million bushels.
Global wheat supplies were increased by
1 million tons as higher production in
both Canada and the European Union
more than offset the lower production
estimates for Australia. Production in
Canada was raised by 2.5 million tons
based on the latest estimates from the
Canadian government. Global wheat
trade estimates were lowered slightly this month, largely due to lower imports in Iran.