The carry-in from the 2012 crop was raised 10 million to 769 million bushels, total production dropped from 14.140 billion to 14.005 billion bushels. Feed use was cut from 5.325 billion to 5.200 billion bushels. Ethanol use was raised 50 million bushels from4.860 billion to 4.900 billion bushels. Export estimates remained steady at 1.3 billion bushels. The carry-out was lowered from 2.004 billion to 1.949 billion bushels.  USDA raised the average price for corn by 10 cents to a range of $4.40 to $5.20.

USDA said, “Corn imports are raised 25 million bushels based on the strong pace of imports to date and expectations that feeders in some locations will continue to supplement domestic supplies as old-crop corn becomes tighter during the summer months.”

“Global coarse grain beginning stocks are also lowered as a reduction in 2012/13 China corn production is only partly offset by an increase in 2012/13 Brazil corn production this month. China corn production is lowered 2.4 million tons based on the latest government revisions for the 2012/13 crop. Brazil corn production is raised 1.0 million tons for 2012/13 based on higher reported area for the safrina crop which will be harvested in the coming weeks.”

Soybean imports are raised 5 million bushels to 25 million based on relatively strong imports through April and expected additional gains through the end of the marketing year. Soybean exports for 2012/13 are reduced 20 million bushels to 1.33 billion bushels reflecting exceptionally low shipments and sales in May and competition from Brazil.  USDA added 25¢/bu. to the price of new-crop soybeans, which are now in a range of $9.75-11.75.

Although soybean exports are reduced, U.S. soybean meal exports are increased this month reflecting stronger-than-expected shipments this spring as importers have been slow to shift to South American supplies. As a result of increased soybean meal exports, the U.S. soybean crush is projected at 1.66 billion bushels, up 25 million. Soybean ending stocks for 2012/13 are projected at 125 million bushels, unchanged from last month.