December 12, 2008
According to the US Agriculture Department, world coarse grain stocks are at the highest in three years, due to slowing US exports and ethanol use, and China' s bumper corn crop.
The USDA forecasts world coarse grain ending stocks for 2008/09 at 165.5 million tonnes, up 14.6 million tonnes or 9.7 percent from its month-ago forecast, the highest level since 2004/05.
The USDA said in its monthly World Agricultural Supply and Demand Estimates Report that total supplies increased by 7.3 million tonnes from the previous month as China's production surged by 4 million tonnes from last month, based on early provincial reports.
Europe, Canada and Ukraine also harvested bigger than expected coarse grain crops, the USDA said.
Global consumption was revised 7.4 million tonnes lower because of a drastic drop in the forecast for US ethanol use combined with low US exports.