(Posted Wed. Oct 12th, 2011)
Oct. 12: U.S. corn supplies have eased with larger projected ending stocks for both the 2010 and 2011 marketing years, the U.S. Department of Agriculture reported today. Ending stocks for 2010, reported on Sept. 30, remain at more than 1.1 billion bushels, up more than 200 million bushels since the Sept. 12 WASDE estimate, and ending stocks for 2011 were increased nearly 200 million bushels to 866 million bushels.
While 2011 acres planted and harvested were decreased slightly, a consistent yield projection has brought 2011 production down 1 percent to 12.4 billion bushels.
“The hard work and dedication of U.S farmers yet again provides an abundant corn crop in 2011 even in the face of some of the worst growing conditions in recent memory,” said National Corn Growers Association President Garry Niemeyer. “As always, U.S. farmers are ready and able to meet all demands for food, feed, fiber and fuel proving media reports of shortages inaccurate and providing for our neighbors, be they next door or in the next state.”
Projected total U.S. corn use for 2011 dropped by 50 million bushels as export projections were lowered to account for increased competition. These reductions were made in light of data suggesting higher than expected corn production from areas bordering the Black Sea and South America. If realized, U.S. corn exports for 2011 would drop to their lowest level since 2002, to 1.6 billion bushels.
Other sectors of corn use that declined in the last crop year were feed and residual use falling by 197 million bushels since September’s report and sweetener and starch use were revised down by 15 million bushels since the reflecting lower than projected usage in the June-August quarter.
In light of increased total corn supply projections and decreased demand, the average farm price fell by 30 cents to $6.70 per bushel.
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