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USDA REPORT PROJECTS HIGHER U.S. CORN SURPLUS
Feb. 11, 2013
National Corn Growers Association (NCGA) reports:
More U.S. corn will be available than previously forecast, according to U.S. Department of Agriculture reports released earlier today. Revising corn ending stock projections upward by 30 million bushels, the report also indicates that a 20 million bushel rise in corn use projections for sweeteners and starch.
"As the picture of the current corn supply continues to become more clear, we are seeing the markets are adjusting," said National Corn Growers Association President Pam Johnson. "U.S. farmers faced a tough drought but, due to biotechnology and enhanced production practices, we brought in a crop unimaginable under similar circumstances only decades ago."
Projected demand for corn from the ethanol sector held steady, while export projections were lowered by 50 million bushels. These factors, along with reports of forward sales made at prices below prevailing cash market bids, caused the projected range for the season-average farm price for corn to lower 20 cents at the midpoint and narrow to $6.75 to $7.65 per bushel.
USDA also revised the global corn trade projections. As reported above, U.S. corn exports were reduced with projections now holding only 25 percent of the global export market. Argentine exports were reduced by nearly 20 million bushels to 747 million bushels. Conversely, Brazilian exports were increased by 60 million bushels, also totaling 747 million bushels. If these projections are realized, each of these countries would have 21 percent of the global corn export market.
For the full report, click here.
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