May 12, 2014
US corn stockpiles to rise more than estimated
Corn inventories before the 2015 harvest in the United States, the world's largest grower and exporter, will rise more than analysts expected as production increased more than forecast, Bloomberg reports.
Reserves on August 31, 2015, will reach 1.726 billion bushels from 1.146 billion forecast this year, the US Department of Agriculture (USDA) said in a report. Analysts in a Bloomberg survey expected 1.641 billion. Production in the season that starts September 1 will total 13.935 billion bushels, compared with 2013's record 13.925 billion bushels (353.7 million tonnes) and the 13.736 billion forecast by analysts.
Corn prices jumped 22% in 2014 as exports surged and record cattle and hog prices boosted demand for the grain in animal feed.
"The surprise is the larger increase in global corn supplies," said Dale Durchholz, the senior market advisor for AgriVisor LLC in Bloomington, Illinois. "Rising reserves is never bullish."
Global inventories before the 2015 northern hemisphere harvest, will total 181.73 million tonnes, up from 168.42 million forecast for the end of this marketing year, the USDA said. Reserves were projected at 162.2 million tonnes, according to the average of 14 analysts surveyed by Bloomberg News.
Corn is the biggest US crop, with a 2013 value of US$62.7 billion, US government figures show.