US grain stock soar and prices fall on increased production, flagging ethanol demand, weak exports

AgWeb is reporting that January USDA reports on grain stocks have forced down corn, wheat and soybean prices. The USDA reported that corn stocks were 300 million bushels above the market consensus, and reduced its ethanol usage forecast by 100 million bushels because of overcapacity and distress among producers. Exports have also slumped.

Corn prices tumbled by 4.81 percent for the week to $3.91 per bushel(despite a 25-cent gain Friday resulting from short position covering), while wheat dropped 8.14 percent for the March contract, and the March soy oil contract fell 5.80 percent.

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