January 14, 2008

USDA cuts corn ending stocks by 20-percent 
 

The forecast for corn ending stocks for the 2007-08 marketing year was once again lowered by the USDA in its monthly agriculture supply and demand report, released Friday (January 11, 2008).

The new forecast of 1.438 billion bushels is a 20-percent drop from December 's 1.797 billion bushels. As recently as October, the forecast was close to 2 billion bushels.

US corn ending stocks for 2007-08 are reduced based on lower estimated production and increased feed and residual use, the report said.

Production forecast was also lowered 0.7 percent from the December forecast to 13.074 billion bushels.

Meanwhile, feed and residual use forecast was raised 5.3 percent to 5.95 billion bushels, up from 5.65 billion bushels.

The record-breaking forecast for corn exports was unchanged at 2.45 billion bushels. The previous record, according to USDA, was 2.4 billion bushels in the 1979-80 marketing year.

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

US farmers are getting strong prices for their corn, the USDA said in the supply and demand report.

"The season-average farm price for corn is projected at US$3.70 to US$4.30 per bushel, up 35 cents on both ends of the range, based on the sharp rise in both cash and futures prices that (have) been sustained during recent weeks," the USDA said. The range predicted in December was US$3.35 to US$3.95, up from the November prediction of US$3.20 to US$3.80.