February 14, 2005

US corn exports lowered from January

Due to increased competition from Argentina and lower imports by Canada, projected US corn exports were lowered 50 bushels to 1.9 billion bushels, down from 1.95 billion last month, and nearly the same as last year. The early-season shipments and sales of US corn have been sluggish. The current US corn export forecast clearly anticipates that during the second half of 2004/05, sales and shipments will be significantly larger than the previous year.

Estimated barley used for food and industrial purposes was lower 22 million bushels to reflect declining use for beer since 1995/96.

Projected Corn Ending Stocks Increased 50 Million Bushels

The only change made in the supply and use for corn this month was a reduction in estimated exports. Projected exports were lowered 50 million bushels because of increased competition from Argentina and reduced imports by Canada. Projected exports for 2004/05 at 1.9 billion bushels would be essentially unchanged from the 1.897 billion recorded in 2003/04. Since none of the other use categories was increased this month, the lowered exports resulted in increased projected ending stocks. Estimated ending stocks are 2.01 billion bushels, up 50 million from last month and up from 958 million in 2003/04. The projected 2004/05 season average corn price range is narrowed 5 cents on each end to $1.85 to $2.05, compared with

$2.42 in 2003/04.