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USDA: CORN PRICES MAINTAIN RECORD HIGHS AS STOCKS REMAIN TIGHT
Mar. 14, 2013
Source: USDA news release
U.S. corn ending stocks for 2012/13 are projected at 632 million bushels, down 36 percent from ending stocks for the 2011/12 marketing year and the lowest since 1995/96.
Subsequent to the 2009/10 season, ending stocks have demonstrated an annual decline attributable to the combination of sustained strong demand for corn from feed, ethanol, and export markets and, particularly in 2012/13, adverse weather conditions that hindered production. Sustained demand and drought-reduced output have pushed prices upward.
At $7.10 per bushel, the forecast 2012/13 season-average farm price is the highest on record and is a reflection of very tight corn supplies.
Starting in 2010/11, the correlation between declining ending stocks and increasing corn prices has become especially strong, underscoring the linkages between corn availability and demand.
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