U.S. corn ending stocks for 2007-08 were projected down some 155 million bushels this month to 1.283 billion due to increased feed use and exports.
USDA increased feed use 200 million bushels and exports 50 million. Exports have been simply astounding this year despite higher corn prices. The weaker U.S. dollar helps, but weather-related problems has caused a shortage of other grains, too -- many of which are used as feed. Or could some countries be stocking up?
Corn use for shrunk by about 100 million bushels, which USDA attributed to a slowing of new plant startups. Still, USDA said rising ethanol prices continue to support producer margins and capacity utilization for existing plants “remains strong.” For details on this report, check out USDA’s World Agriculture Supply and Demand Estimates website.
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