Market News

Low corn ending stocks signal more demand rationing

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.

Don Roose discusses the implications of the numbers (4 Minutes, 20 Seconds, MP3)

Email this to someoneShare on FacebookTweet about this on TwitterShare on Google+Print this page

Add Comment

Your email address will not be published.


stay up to date

Subscribe for our newsletter today and receive relevant news straight to your inbox!