US corn, soybean futures dip on world stocks report

11 December 2012 22:15  [Source: ICIS news]

HOUSTON (ICIS)--US corn and soybean futures fell on Tuesday after the US Department of Agriculture (USDA) reported that world grain and oilseed stocks were little changed from a month earlier.

Global grain supplies (including corn, wheat and rice) were estimated at 2.7bn tonnes in USDA's World Agricultural Supply and Demand Estimates (WASDE) report for December, the second largest stockpile on record.

"As expected, today's WASDE report was a non-event as far as the US corn balance was concerned," the Renewable Fuels Association (RFA) said. "The only change was a slight decrease in the 2012/13 season-average price estimate from $7.60/bu to $7.40/bu."

The USDA said China reported a larger-than-expected corn crop (4% larger than the November estimate). 

The estimated size of Brazil's corn crop was unchanged, while Argentina saw a slight decrease, according to the report.

The US ethanol industry is projected to use 78.9m tonnes of grain, meaning just 2.92% of the world grain supply is consumed for US ethanol, the lowest rate in 5 years, RFA said.

Grain available for non-ethanol use in 2012-2013 will be 15% higher than 10 years ago in 2003-2004.

The USDA cut US soybean ending stocks 10m bushels to 130m bushels, citing an increase in domestic crush. The move trimmed the stocks-to-use ratio to 4.3% from 4.6% in November.

By: Frank Zaworski
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