April 11, 2007

USDA raises forecast for 2006/07 US corn ending stocks

The US Department of Agriculture on Tuesday (Apr 10) said corn ending stocks for the 2006/07 marketing hear will be higher than expected a month ago because of reduced livestock feed demand.

Corn ending stocks, the USDA said in its April supply and demand report, will total 877 million bushels, an increase from the government agency's forecast last month for 752 million bushels.

"Feed and residual use is projected at 5.85 billion bushels, down 125 million bushels, as the March 1 stocks indicated lower-than-expected use in the December-February quarter," the USDA said.

The move to raise its 2006/07 carryout forecast was an expected one. Market analysts surveyed by Dow Jones Newswires said their expectations were based on higher corn prices relative to other livestock feed components.

The USDA lowered its forecast for 2006/07 ending stocks back in January to 752 million bushels, down from its December forecast of 935 million bushels.