Corn stockpiles seen down 47% next year; wheat stocks expected to jump
Next year's corn stocks are expected to show a steep drop from this year when the U.S. Department of Agriculture reports its estimates Friday, potentially pushing corn prices further into record territory.
The USDA's World Agricultural Supply and Demand Estimates monthly report may also show sharp increases in soybeans and wheat stocks next year, adding downward pressures on wheat prices, analysts said.
The USDA is expected to report corn stocks for the year ending Aug. 31, 2009, to fall to 685 million bushels, according to analysts surveyed by Thomson Reuters, down 47% from 1.283 billion bushels in 2008. The corn crop season ends on Aug. 31.
The corn market already has "this momentum built in as this bullish bias," said Elaine Kub, an analyst at DTN, a commodities information provider. "You might see an outsized reaction to" the report....MORE