USDA puts 2010/11 corn inventories at 1.573 billion bushels

The USDA on Thursday (Jun 10) estimated 2010/11 (August/September) corn ending stocks at 1.573 billion bushels, below trade estimates for 1.806 billion bushels.

The USDA pegged 2010/11 soy ending stocks at 360 million bushels, topping trade forecasts for 354 million bushels.

Those figures compare with the USDA's May estimate of soy ending stocks at 365 million bushels and corn ending stocks at 1.818 billion bushels.

Old-crop 2009/10 corn stocks were forecast by the USDA at 1.603 billion bushels, compared with trade estimates for 1.714 billion bushels. Old-crop soy stocks were pegged at 185 million bushels compared with trade estimates for 180 million.

The USDA also predicted US winter wheat production at 1.483 billion bushels, above trade estimates for 1.439 billion bushels.

USDA reported US wheat ending stocks for 2009/10 at 930 million bushels and for 2010/11 at 991 million bushels.

"It doesn't imply there is a tight situation projected (in corn stocks) as long as we've got the production. It does mean that we are getting to the point where we're going to have to make sure we have the production. At minimum it should stabilise things,” said Jack Scoville, analyst at The Price Futures Group.

"People will probably question the ethanol demand. Obviously the USDA is anticipating an increase in use, probably through government mandates, perhaps through crude oil pricing. We'll see," he said.