08 February 2013 22:47 [Source: ICIS news]
HOUSTON (ICIS)--The US Department of Agriculture (USDA) on Friday said that domestic corn ending stocks have increased since its January report.
In its February edition of the World Agricultural Supply and Demand Estimates (WASDE), the USDA estimated that corn stocks are now at 632m bushels, a 30m bushel increase. Corn exports are projected to be 50m bushels less in the period of 2012-2013, according to the WASDE.
The WASDE states that US feed grain ending stocks for 2012-2013 are projected higher this month, as lower expected exports outweigh an increase in projected domestic usage. The decreases in exports are based on the sluggish pace of sales and shipments to date, as well as the prospect of more competition from ?xml:namespace>
The report also forecast that the projected range for the season-average price for corn will be lowered by 20 cents at the midpoint and will fall in a range of $6.75-7.65/bushel (€5.06-5.74). This is a viewpoint that will likely viewed by commodity traders and outside investors as neutral to slightly bearish for the upcoming spring corn crop.
Overall corn prices have reacted favourably following the January WASDE report and reached as high as $7.40/bushel last week before several factors, including long-term weather forecasting, profit taking by non-commercial investors and uncertainty of the February report, caused futures pricing to slide over the last several days.
On Friday, corn fell by 1.6 cents to close at $7.09/bushel.
In the global perspective, the USDA has estimated that ending corn stocks have increased by 2.1m tonnes, with the rise coming from production in
Looking to the other major
The USDA has predicted that global soybean ending stocks are going to be at 269.5m tonnes, with
Besides traders and farmers keeping a watchful eye on the two crops, those within the fertilizer industry have been keeping tabs on the market as the spring refilling season for the major nutrients has commenced.
Following the traditional seasonal slowdown and a strong fall application period, market sentiment and pricing for urea and ammonia are beginning to climb higher, as distributors have begun to restock inventories in advance of potentially the largest corn crop to be planted in
($1 = €0.75)
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