July 13, 2006

USDA raises 2005/06 corn export forecast, sees less stocks

The US Department of Agriculture on Wednesday (Jul 12) said old-crop corn exports are stronger than expected and lowered its forecast for 2005/06 ending stocks to 2.06 billion bushels, about a 114-million-bushel decrease.

"For 2005/06, US corn exports are increased 25 million bushels, based on the recent pace of shipments and sales," the USDA said in its monthly supply and demand report. "Feed and residual use are raised 100 million bushels."

The USDA raised its 2006/07 US production forecast for corn, as market analysts generally expected but lowered its prediction for ending stocks instead of a small increase that was expected.

"The 2006/07 US outlook for corn includes higher production, lower beginning stocks and higher use, compared with last month," USDA said in the July report.

US corn production for 2006/07 is now forecast at 10.74 billion bushels, up from USDA's June forecast of 10.55 billion. But total corn use, USDA said, will be stronger than expected last month. The USDA put its usage forecast at 11.735 billion bushels, up from 11.645 billion.

The new USDA forecast for 2006/07 corn ending stocks is 1.077 billion bushels, down from the June prediction of 1.091 billion.