A USDA report last week showed estimates for ending stocks of corn and soybeans for the 2013-2014 market year came in below trade expectations, according to an article by Agriview (http://bit.ly/…).
The U.S. Department of Agriculture's World Agricultural Supply and Demand Estimates report found projected corn use for the coming year increased 100 million bushels this month, with equal portions split between ethanol and exports.
Ending stocks of corn were down 95 million bushels with corn stock-to-use ratio down from 14.6% in November to 13.7%. The report saw little change in world corn production.
According to Texas A&M University grain marketing economist Mark Welch, favorable ethanol margins and favorable corn prices have strengthened production during October and November. Also working to strengthen ethanol margins are higher prices for ethanol and dried distillers grains.
Lower corn prices have caused the value of DDG to corn exceed 1.2, even reaching 1.4 in some areas. However, demand for protein feeds has strengthened, spurred by robust export demand.
Cheryl Anderson can be reached at Cheryl.email@example.com.
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