USDA increased its ending stock forecast
for corn last week as part of its monthly World Agricultural Supply and
Demand Estimate (WASDE). The report marks the last change of the year
for U.S. grains. The final crop report will come in January as USDA
reports ending production for the 2008/2009 marketing year. The focus
for grain markets will now shift to the southern hemisphere where the
growing season is underway in South America. According to the WASDE
report, ending stocks for corn are now expected to come in at 1.124
billion bushels, a 36 million bushel increase over the prior report,
but near pre-report expectations. The report revised the U.S.
production number lower by 13 million bushels to 12.020 billion
bushels. Yields are expected to average 153.8 bushels per acre, down
one-tenth from the Oct. 28 revised production forecast.