The USDA released its World Agricultural Supply and Demand Estimates today projecting higher supplies of U.S. feed grains for 2009/2010. The report raises its 2008/09 ending stocks estimate to 1.77 billion bushels, putting pressure on grain futures prices.
In addition, USDA increased 2009/10 ending stocks to 1.55 billion bushels. The new-crop increase was 460 million bushels above June, but was less than expected.
Corn production for 2009/2010 is projected at 12.3 billion bushels, up 355 million bushels from last month. USDA projects feed and residual use will increase by 50 million bushels as a result of increased supplies and lower prices.
The slightly bearish USDA Supply/Demand report, bearish outside market and nearly ideal crop growing conditions are pressuring prices.
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