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- Continuing high levels of domestic corn-based ethanol production and gains in exports will keep corn demand high, according to USDA's 10-year projections.
- Cotton prices are projected to fall in the initial years of the projection period and rise only moderately in subsequent years, reducing producer returns.
- Continued growth of U.S. rough-rice exports to Latin America (nearly all long-grain rice) is projected to account for most of a projected expansion of U.S. rice exports.
While strong wheat prices are expected to boost wheat plantings for 2012, with relatively weak overall demand growth for wheat, producer returns initially fall and then rise less than returns for other crops in subsequent years. This is expected to lead to a decline in wheat plantings to about 51 million acres by the end of the projection period.
U.S. wheat exports are projected to decline slowly to 900 million bushels annually by the end of the projection period.
Projected price increases for wheat are more moderate than those for corn and soybeans and will decline toward the end of the projection period as U.S. wheat exports fall.