USDA Boost Corn Stocks

CHICAGO - Apr 10/07 - SNS -- International agricultural commodity markets were relatively busy after the long Easter weekend, which slowed business in much of the world in front what proved to be surprising USDA supply and demand updates for wheat, corn and soybeans.

In today's USDA updates, 2006-07 ending stocks for wheat were reduced 50 million bushels from last month to 422 million due to increases in domestic use and exports. This number is well below pre-report guesses by traders, which averaged 448 million bushels.

Exports are raised 25 million bushels to 900 million reflecting improved export prospects as U.S. prices, particularly for soft red wheat, are more competitive in the world market

U.S. corn ending stocks for 2006-07 are projected at 877 million bushels, up 125 million from last month based on lower projected feed and residual use, and above the average pre-report guess by traders of 839 million bushels.

Feed and residual use is projected at 5,850 million bushels, down 125 million. Seed use was increased, while food and non-ethanol industrial were decreased.

Projected U.S. soybean ending stocks of soybeans are up 20 million bushels to a record 615 million bushels as reduced exports, crush, and seed use are only partly offset by higher residual use. This is well above what the trade was expected. They thought ending stocks would drop 10 million bushels to 585 million.

Soybean exports are reduced 20 million bushels reflecting slower than expected shipments to date reported by the U.S. Census Bureau.

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