Corn stocks down, ethanol feedstock demand holds steady
November 11, 2009
BY Kris Bevill
Report posted Nov. 11, 2009, at 3:28 p.m. CST
Projections for corn supplies worldwide are down and farm prices are up, according to the latest USDA World Agricultural Supply and Demand Estimates. Meanwhile, the ethanol industry's projected demand for corn remains steady at 4.2 billion bushels for November.
A 1.3-bushel-per-acre reduction in the USDA's forecast yield is responsible for its 97 million bushel reduction in expected corn production. Lowered U.S. production expectations, combined with reduced production from Brazil, Russia, Venezuela, Canada and the European Union, has resulted in the USDA lowering its expectations for global corn beginning stocks by 2.8 million tons.
U.S. corn exports were lowered by 50 million bushels to reflect a slow pace of shipments in recent weeks and increased competition that is anticipated from Black Sea corn supplies. Despite lessened export expectations, the USDA projects U.S. corn ending stocks to be down 47 million bushels from October's estimate of 47.2 million metric tons.
Lowered stock projections are expected to improve prices paid to farmers for their corn. The USDA estimates that the average farm price paid bushel has increased by 20 cents on each end of the range. Prices expected per bushel are now forecast to be between $3.25 and $3.85.
Projections for corn supplies worldwide are down and farm prices are up, according to the latest USDA World Agricultural Supply and Demand Estimates. Meanwhile, the ethanol industry's projected demand for corn remains steady at 4.2 billion bushels for November.
A 1.3-bushel-per-acre reduction in the USDA's forecast yield is responsible for its 97 million bushel reduction in expected corn production. Lowered U.S. production expectations, combined with reduced production from Brazil, Russia, Venezuela, Canada and the European Union, has resulted in the USDA lowering its expectations for global corn beginning stocks by 2.8 million tons.
U.S. corn exports were lowered by 50 million bushels to reflect a slow pace of shipments in recent weeks and increased competition that is anticipated from Black Sea corn supplies. Despite lessened export expectations, the USDA projects U.S. corn ending stocks to be down 47 million bushels from October's estimate of 47.2 million metric tons.
Lowered stock projections are expected to improve prices paid to farmers for their corn. The USDA estimates that the average farm price paid bushel has increased by 20 cents on each end of the range. Prices expected per bushel are now forecast to be between $3.25 and $3.85.
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