The U.S. corn yield forecast for 2011/12 dropped 4.9 bushels per acre this month to 148.1 bushels. Corn production prospects are reduced 417 million bushels to 12.5 billion, just 0.4 percent higher than the previous year despite a 4.6-percent increase in planted area. Sustained high corn prices are expected to reduce use, with feed and residual down 200 million bushels and ethanol use and exports each down 100 million. U.S. ending stocks are down 42 million bushels to 672 million, as high prices maintain a stocks-to-use ratio near 5 percent. World corn ending stocks are boosted this month as foreign production responds to sustained high prices. The U.S. share of world corn trade is projected to fall below 50 percent for the first time in 30 years.

Corn yield drops, boosts price prospects