USDA increased corn ending stocks for the 2007-08 marketing year in its latest supply/demand report this morning – to 1.6 billion bushels. That increases the cushion going into the next marketing year. Click here for the full report.
For the next marketing year, USDA increased harvested acres by 100,000 based on the June 30 acreage report. It lowered production, though, by cutting yield estimates another half-bushel. That puts 2008-09 production at 11.7 billion bushels. But if you add in the 1.6 billion carry-in, that gives a total corn supply of 13.3 billion bushels.
USDA also cut corn for ethanol by 50 million bushels (although analysts believe this cut should have been larger). This cut was offset by an additional 50 million bushels going for feed use. In the end, USDA estimated next year’s carry-out to be 833 million bushels, up from last month’s estimate of 673 million.
The 2008-09 marketing year average price was projected to be $5.50 to $6.50 per bushel, up 20 cents on each end
of the range.
Although this report increases overall corn supplies, next month’s report is the biggie. Not only will it give first “real” production numbers, but it will include an updated acreage count based on USDA’s July survey of states that saw significant flooding.
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