The U.S. corn and soybean crops are both slightly smaller than earlier expected, according to Wednesday's monthly USDA Crop Production report.

Corn is forecast at 12.4 billion bushels, down 1% from last month's estimate and slightly off 2010's production. Soybeans are seen at 3.06 billion bushels, also down 1% from last month's guess and 8% lower than a year ago.

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Yield-wise, USDA's Wednesday report shows an average nationwide yield of 148.1 bushels/acre. That number's unchanged from last month's estimate, and is down almost 5 bushels/acre from the 2010 crop. "If realized, this will be the lowest average yield since 2005. Area harvested for grain is forecast at 83.9 million acres, down 1% from the September forecast," according to Wednesday's report.

Soybean yields are pegged at 41.5 bushels/acre, down slightly from USDA's October estimate and 2010. This, USDA says, would be the second-lowest national soybean yield since 2003 if realized. 

Those lower production numbers are somewhat offset on the balance sheet by higher projected grain stocks. Wednesday's World Supply/Demand Estimates (WASDE) report shows there's 144 million more bushels of corn on hand in the U.S. Total U.S. corn use, USDA says, is pegged 50 million bushels lower "with reduced exports," according to the WASDE report.

For soybeans, ending stocks are seen just 5 million bushels lower than earlier estimates, at 160 million bushels. "

U.S. soybean exports for 2011/12 are reduced 40 million bushels to 1.375 billion reflecting the slow pace of export sales and strong early season export competition from South America," according to the WASDE report. "The September 1 stock estimate of 215 million bushels indicated higher-than-expected residual use for 2010/11. As a result, the 2011/12 residual use is projected at 32 million bushels, up 9 million from the previous estimate."

• See more from the latest WASDE report

USDA post-report press briefing