09 December 2011 17:47 [Source: ICIS news]
HOUSTON (ICIS)--US and global stocks of wheat, corn and soybeans were projected higher in December because of increased production estimates and lower use, the US Department of Agriculture (USDA) said on Friday.
Despite the seemingly pessimistic numbers, wheat, corn and soybean futures were trading slightly higher on the Chicago Mercantile Exchange as commodity markets reacted positively to news of economic developments in Europe.
US wheat ending stocks (production minus use) for the 2011–2012 crop year (September 1 – August 31) were projected at 878m bushels, 50m bushels higher in December versus month-ago estimates, because of lower export demand, the USDA said in its monthly World Agricultural Supply and Demand Estimates.
Larger supplies in several major exporting countries and relatively strong domestic prices contributed to the increased estimate for wheat ending stocks.
Corn ending stocks were projected at 848m bushels, 5m bushels higher in December, because of lower estimated corn use for food, seed and industrial purposes.
The USDA forecast the average farm price for corn for 2011–2012 at $6.40/bushel, 30 cents/bushel lower than projected in November.
The USDA projected that global corn production for the 2011–2012 crop would set a new record of 867.5m tonnes, up by 3% from the prior year because of higher yield expectations.
US soybean ending stocks for 2011–2012 are estimated at 230m bushels, up by 35m bushels from the November estimate, because of reduced domestic consumption and fewer exports.
Global production of oilseeds, such as soybeans, cottonseed and rapeseed, for 2011–2012 is projected at 457.6m tonnes, up by 2.6m tonnes from the USDA's November estimate.
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