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Corn Stocks Rise Less Than Analysts Forecast

January 10, 2014
Corn Pile
  

Corn stockpiles in the U.S., the world’s top grower, were 30 percent larger on Dec. 1 than a year earlier after farmers harvested a record crop. Analysts were expecting a 34 percent jump.

Inventories totaled 10.43 billion bushels, up from 8.03 billion (204 million metric tons) a year earlier, the U.S. Department of Agriculture said today in a report. The figure was less than the 10.764 billion average estimate of 24 analysts in a Bloomberg survey. Corn futures plunged 40 percent in 2013 as farmers harvested a record crop.

Larger-than-expected grain inventories may reduce feed costs for hog processor Shuanghui International Holdings Ltd. and poultry producer Sanderson Farms Inc. Meat processor, exporter and ethanol producer Cargill Inc. said yesterday that second-quarter profit rose 36 percent from a year earlier as the bigger U.S. harvest boosted margins.

The U.S. crop, the nation’s biggest, totaled a record 13.925 billion bushels in 2013, down from 13.989 billion estimated in December and up from than the drought-reduced 2012 harvest of 10.78 billion, the USDA said in a separate report today. Analysts expected 14.06 billion bushels, on average.

U.S. inventories before the 2014 harvest will total 1.631 billion bushels, compared with 1.792 billion estimated in December and 821 million at the start of this marketing year, the USDA said. Traders expected 1.855 billion bushels.

Cash-corn prices in the current marketing year will average $4.10-$4.70 a bushel, compared with the December estimate of $4.05-$4.75 and down from $6.89 last year.

World output in the crop year that began Oct. 1 will be 966.92 million tons, compared with from 964.28 million forecast a month earlier and up from 862.95 million the previous year, the USDA said.

Worldwide inventories at the end of the marketing year will be 160.23 million tons, compared with 162.46 million predicted a month ago and up from the year-earlier figure of 132.98 million. Analysts surveyed by Bloomberg forecast reserves would rise to 163.08 million.

 

--Editor: Millie Munshi

 

To contact the reporter on this story: {Jeff Wilson} in Chicago at jwilson29@bloomberg.net

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RELATED TOPICS: Dairy, USDA, Feed Prices

 
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