This month’s USDA World Agricultural Supply and Demand Estimate (WASDE) and Crop Production reports lowered corn production estimates and increased soybean yield estimates compared to last month’s report. The corn production estimate for the 2012/2013 crop was lowered to 10.7 billion bushels, 21 million bushels lower than its September projection. If the estimate holds, this would be the smallest corn crop since 2006 and 13% below last year’s crop. Yields are estimated at 122 bu./acre, down 25.2% from last year and the lowest yield average since 1995. Harvested acres are estimated at 8.77 million acres. USDA lowered its season-average price forecast by 10 cents/bu., setting the range at $7.10 to $8.50/bu. USDA forecast soybean production at 2.86 billion bushels, up 226 million bushels based on higher harvested acres and yield. The soybean yield is forecasted at 37.8 bu./acre – an increase of 2.5 bu./acre from last month’s estimate. Season-average price forecast was lowered to a range between $14.25 and $16.25/bu.