April 11, 2008

USDA issues greater reduction of corn ending stocks forecast

The USDA lowered its forecast for 2007/2008 US corn endings stocks by 155 million bushels to 1.283 billion, bigger than previous estimates of analysts.

This forecast is foreseen to push already inflated corn prices even higher.

USDA said robust feed and residual corn use and larger exports more than offset reduced expectations for corn ethanol use.

The department also raised its projected season-average farm price for corn from the month-ago forecast of US$3.75 - US$4.25 to US$4.10 - $4.50 per bushel.

On the other hand, the USDA raised its soy stocks forecast by 20 million bushels to 160 million, on expected lower residual use, and lowered its average farm price forecast to US$10.00 - US$10.50 per bushel from last month's US$10.00 - US$10.80.

Furthermore, USDA dropped its soymeal average price forecast to US$315 - US$335 per short tonne from a month-ago forecast of US$320 - US$350 per short tonne.