Bigger harvests of corn, rice, wheat and soybeans are forecast to boost world stockpiles of the crops in the 2013-14 season, according to the Agricultural Market Information System set up by Group of 20 countries.
Corn inventories will jump the most among the four agricultural commodities tracked by AMIS as bigger crops more than make up for a gain in usage of almost 6 percent on higher feed and industrial demand, according to a report published online today.
Corn is the worst performer in the S&P GSCI gauge of 24 raw materials in the past 12 months, sliding 41 percent amid an outlook for rising production of the grain. Wheat and soybeans are the fourth- and fifth-worst performers.
"In spite of weather conditions causing sharp price movements in August, global harvests for all AMIS crops are expected to be historically large, with overall production exceeding utilization and resulting in much higher world inventories," AMIS wrote.
World corn production is forecast to climb to 983 million metric tons from 875 million tons, lifting ending stocks to 176 million tons from 135 million tons. That compared with last month’s forecast by the U.S. Department of Agriculture for output of 957 million tons and stocks of 150 million tons.
The corn production outlook was raised by 11 million tons from July on a larger officially reported crop in Argentina and an improved outlook for the European Union and Ukraine, the report showed.
Farmers around the world will harvest 710 million tons of wheat in 2013-14, from 660 million tons the previous season, according to the AMIS report, up 6 million tons from a prior outlook. That will lift stocks to 170 million tons from 157 million tons.
Rice output is seen climbing to 497 million tons from 491 million tons in 2012-13, with stocks advancing to 181 million tons from 174 million tons.
World production of soybeans is predicted to rise to a record 284 million tons from 266 million tons, bolstering ending stocks to 31 million tons from 25 million tons, according to the AMIS report.