Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 12/10/10

USDA surprised market analysts by raising its corn ending stocks estimate due to an increase in corn imports from Canada.

In its monthly World Agricultural Supply and Demand Estimates report, USDA forecast corn stocks next September at 832 billion bushels, up 5 million bushels from it month ago forecast.

Market analysts, however, were expecting USDA to lower ending stocks to about 803 billion bushels, according to Deutsche Bank research analyst Christina McGlone. In a note to investors, she called the report bearish for corn prices.

USDA did not change its average farm price forecast for the marketing year from its range of $4.80 to $5.60 per bushel, as ending stock are still forecast at a 15-year low. USDA also left unchanged its forecast of corn use for ethanol at 4.8 billion bushels.

On the Chicago Board of Trade, however, corn futures prices fell by just over 2 cents per bushel to $5.58 per bushel for December delivery in late trade due to the disparity between market expectation and the USDA report.

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