April 9 (Bloomberg) -- The U.S. cut its estimate for 2014 corn inventories more than analysts predicted as the outlook for exports improved, a government report showed.
Corn reserves on Aug. 31 will be 1.331 billion bushels, down from 1.456 billion (37 million metric tons) forecast in March, the U.S. Department of Agriculture said today in a report. Analysts in a Bloomberg survey expected 1.404 billion bushels.
Stockpiles are forecast to rise from 821 million bushels a year earlier after domestic production jumped. Exports will be 1.75 billion bushels, compared with 1.625 billion estimated in March, the USDA said.
On March 31, corn futures in Chicago entered a bull market after touching a 40-month low of $4.0625 a bushel on Jan. 10. The price at the farm gate may average $4.40 to $4.80 in the 12 months that began Sept. 1, compared with $4.25 to $4.75 forecast in March, the USDA said.
World output in the year that began Oct. 1 will be 973.9 million tons, compared with 967.52 million forecast a month earlier and 866.94 million a year earlier, the USDA said. Production in Brazil was estimated at 72 million, up from 70 million forecast a month ago. Argentina farmers may harvest 24 million, unchanged from the USDA’s prediction in March.
Global inventories before the start of the Northern Hemisphere harvests in 2014 will be 158 million tons, compared with 158.47 million projected a month ago and 134.40 million last year. Traders surveyed by Bloomberg forecast 157.72 million, on average.
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