From Agrimoney:
US officials provided a "sanity check" in raising their estimate for domestic supplies by less than markets had expected, Morgan Stanley said, as investors forecast - for now - an end to corn price falls.Morgan Stanley pegged corn, with palladium, as its best bet among commodities, saying that investors were "continuing to underestimate the potential for a rebound in US demand", as highlighted by US Department of Agriculture data on Friday.The USDA, in its much-watched Wasde crop report, raised its forecast for world corn stocks at the close of 2013-14 to 1.887bn bushels – an upgrade of 32m bushels, but well short of market expectations.The relatively small revision was in part thanks to a 275m-bushel rise to expectations for demand over the season, which offset an increased estimate for US production.'Sanity check'"Friday's Wasde provided a sanity check, dismissing the most aggressive supply estimates and, importantly, acknowledging that demand has strengthened materially in response to lower prices," Morgan Stanley said."We remain bullish on corn," the bank said, estimating Chicago prices, on a spot contract basis, will average $5.30 a bushel in 2013-14, well above the $4.46 a bushel it said was implied by the futures curve....MORE
Recently:
Bloomberg had collected estimates from 36 analysts averaging 14.029 billion vs the USDA estimate of 13.989 billion. Either way it is a record crop but the undershoot gave a little support to prices:
Corn $4.225 up 2 cents
