Record 2012 corn production and above average 2012 wheat production could easily result in relatively low (little) wheat and corn prices.

If U.S. and foreign wheat production is greater than currently expected, wheat prices may decline to new crop corn prices.

Wheat tours in Oklahoma and Kansas both predicted record or near record yields. Oklahoma’s percent harvested acres were projected to be about 75 percent compared to an average of 69 percent.

If the weather cooperates, U.S. wheat production could be 250 million bushels higher than 2011 wheat production.

U.S wheat ending stocks may increase from less than 800 million bushels in 2011/12 to more than 900 million bushels in 2012/13. Hard red winter wheat production for 2012 could be more than 1 billion bushels, which would be 35 percent higher than 2011 production.

The USDA projected 95.9 million acres will be planted to corn. Some analysts project that 2012 U.S. corn yields will average 164 bushels per acre. Corn production is projected to top 14 billion bushels.

Corn ending stocks may increase from about 800 million bushels to more than 1.6 billion bushels in 2012/13. One analyst projects 2012/13 ending stocks to be 2 billion bushels.

Due to expected record corn production and significantly higher stocks, lower corn prices are already reflected in the Chicago Board of Trade corn futures contract prices. The spread between the CBT July corn contract price and the December corn contract price is 89 cents, with May higher than December.