In the January 12 WASDE and NASS reports, the following highlights are of importance in South Dakota.

Corn

Higher U.S. production levels for 2011 weighed on the markets. However, exports were higher also with a net result of a small decline in ending stocks. The U.S. price projection was lowered slightly. In South Dakota the production for 2011 was increased slightly from earlier estimates and on-farms stocks are up. Thus, locally prices will be under some pressure and a weaker basis is expected.

Soybeans

Lower U.S. exports resulted in higher ending stocks. The U.S. price projection, however, was left unchanged. While on-farm stocks are higher in South Dakota, the lower production estimate may give some support to the basis as producers look for remaining opportunities to sell old crop soybeans.

Wheat

Lower feed use and higher seed use combined to slightly reduce U.S. ending stocks of wheat. The WASDE report was overshadowed by higher winter wheat seedings in the southern plains. In South Dakota the seedings are down substantially from last year. The impacts on prices are likely to be neutral as lower futures prices will be offset by a higher basis level.