October 1, 2007

USDA reports show less than expected use of corn and soy

USDA issued a raft of domestic supply and demand data Friday which apparently pointed to an underuse of the nation's corn and soy stocks.

Apparently, the market is using less corn than previously anticipated.

USDA figured corn stocks at 1.303 billion bushels, over 120 million bushels above the highest pre-report estimate.

One likely reason was the lighter weights of hogs and cattle at marketing or the fact that more farmers are substituting corn for DDGS, analysts said.

Soy also had higher stocks than expected. However unlike corn, while soy supplies went up, demand did not.

Soy stocks, at 573 million bushels, was eight million bushels more than the highest pre-report estimate.