February 22, 2012

US corn exports seen at 50 million bushels

Overseas corn purchases of the US were raised to 50 million bushels for February due to adverse weather conditions in Argentina, boosting prospects for higher demand.

Corn imports are projected five million bushels higher, mostly reflecting strength in reported imports through November. As a result, ending stocks slip to 801 million bushels, down 45 million bushels from last month's projection.

The stocks-to-use ratio is projected at 6.3%, down from 6.7% last month and the lowest level since 1995/96, when the stocks-to-use fell to 5.0%.

Unlike in 1995/96, corn being held by farmers for delivery to ethanol plants is expected to account for a significant portion of 2011/12 ending stocks, making it more difficult to draw down ending year supplies.