April 14, 2006

US corn stocks down for third straight month

The USDA has revised US corn stocks downwards for the third straight month, putting April estimates at 58.5 million tonnes, 3 million tonnes below January's 61.6 millon tonnes.

Escalating demand for corn outside the US is a chief reason behind the reduced stocks, according to the USDA.

Strong demand in Asia, and decreased exports by both Argentina and China is enabling the US to capture an increasing share of the world market for coarse grains, said Ken Hobbie, US Grains Council president.

China is turning from a net exporter to a net importer due to its booming economy while corn production Argentina is expected to be reduced 30 percent to 14 million tonnes this year due to bad weather.