Web exclusive posted March 11, 2008 at 3:49 p.m. CST

The USDA raised its projections of world corn supplies for the 2007-'08 crop year by 3.9 million tons in its monthly World Agriculture Supply and Demand Estimates report released March 11. As a result, the USDA left its projected season-average farm prices for corn unchanged at $3.75 to $4.25 per bushel.

In its discussion on estimated world supplies of coarse grain, the USDA said Brazil's corn production increased 3 million tons due to higher summer crop yields and a larger winter crop area. Adequate rainfall and minimal heat stress during the Brazilian summer crop's growing season pushed yields above trend averages. For the Brazilian winter corn crop, a timely dry spell in February, combined with higher prices, boosted plantings. Corn production estimates in India were raised by 500,000 tons, and Philippines estimates were raised 400,000 tons. In other coarse grains, Australia's sorghum crop is expected to be a record thanks to abundant soil moisture.

On the demand side this month, the USDA slightly raised the figures for global coarse grains imports and exports for 2007-'08. Global imports increased 400,000 tons, while global coarse grain consumption increased 800,000 tons. Increases in sorghum and barley offset a small reduction in corn feeding.

In this year's battle for acres, crop watchers are keeping an eye on all crops as each sector attracts more acres. The USDA lowered its projected U.S. wheat ending stocks by 30 million bushels based on higher food use and exports. Raised export projections reached 25 million bushels, and were based on the pace of export sales and shipments, and on continued export restrictions by major competitor countries. Despite record prices, export commitments for U.S. wheat continue to accumulate.