December 12, 2007

USDA lowers US corn ending stocks again, raises export forecast

The US Department of Agriculture again lowered its 2007-08 marketing year forecast for corn ending stocks, according to the monthly agriculture supply and demand report released on Tuesday (December 11, 2007).

Citing stronger-than-expected exports, the USDA dropped its corn ending stocks forecast to 1.797 billion bushels, a 100-million-bushel decrease from the 1.897 billion it predicted just a month ago. The November prediction was also a 100-million-bushel drop from the 1.997 billion predicted in October.

Corn exports this year, if they reach the new USDA forecast of 2.45 billion bushels, would surpass the record level of 2.4 billion bushels set in the 1979-80 marketing year, the USDA said in its December report.

"The corn export forecast is raised 100 million bushels on expected increases in foreign consumption and imports," the USDA said.

USDA's forecast for corn usage by the US ethanol industry remained unchanged at 3.2 billion bushels.

Along with raising the forecast for exports and lowering the forecast for ending stocks, the USDA bumped up its predictions for the prices farmers get for their corn. The newly predicted average range is US$3.35 to US$3.95, up from the November prediction of US$3.20 to US$3.80.