USDA has lowered yield estimates from last month for the 2010 cotton, corn, soybeans and rice crops, thereby lowering projected production for the four commodities.

According to USDA’s Nov. 9 World Agricultural Supply and Demand Estimates, cotton production dropped nearly half a million bales, while rice production declined 700,000 hundredweight. Here’s more from the report.

Cotton

Estimated U.S. cotton production was lowered 455,000 bales to 18.4 million bales, due to reductions in yields for Texas. Higher production was estimated for the Delta and Southeast regions. Yield is expected to average 821 pounds per acre, up 44 pounds from last year.

Domestic mill use was reduced 150,000 bales to 3.45 million bales in response to sharply higher prices.

Exports were raised 250,000 bales to 15.75 million bales, based on extremely strong export sales to date. Ending stocks were reduced 500,000 bales to 2.2 million bales, the lowest since 1925.

Estimated world cotton production was reduced 1.4 million bales. With supplies insufficient to meet demand, world consumption of 116.8 million bales was reduced 3 percent from last month and 1.4 percent from last season. World ending stocks were reduced 5 percent to 42.2 million bales. The world stocks-to-use ratios were reduced to 37 percent and 36 percent, for old crop and new crop, respectively.

Corn

U.S. corn production is forecast 124 million bushels lower as estimated yields declined 1.5 bushels to 154.3 bushels per acre. Feed and residual use is projected 100 million bushels lower, while exports were lowered 50 million bushels, due to higher prices.