With corn ending stocks for the current marketing year projected at just over 600 million bushels, demand rationing should be a big factor for corn as we go forward.
Don Roose, President of U.S. Commodities, tells Brownfield he’s keeping a close watch on feed demand, “When you look at it logically, we’ve rationed the exports very aggressively, we’re at 30-year lows on the exports at 1.150 billion (bushels), we’ve rationed the ethanol down to levels are acceptable. The feed is the one that we’re having a hard time with. Typically, how we do that are higher prices or at least a high enough price long enough that the livestock sector either feeds more efficiently or cuts back on livestock. It looks like poultry and hog numbers are going to be over a year ago, cattle under a year ago slightly, so it’s going to be a tough job.”
USDA currently estimates 2012/13 corn ending stocks at 619 million bushels, compared to 988 million at the end of the 2011/12 marketing year.
USDA’s next set of supply and demand projections are out Friday, November 9.