Big corn crop & stocks ahead -- USDA
Record crops are likely to boost domestic stockpiles of corn to 2.177 billion bushels at the end of the 2013-2014 marketing year, and soybean stocks are likely to total 250 million bushels, the U.S. Department of Agriculture said Friday.
The USDA is also counting on good growing weather this year, a sharp change from drought conditions that scorched crops across the country last year.
Drought conditions persist this year in much of the country, but there is plenty of time for that to change before corn and soybean farmers plant their fields this year, according to USDA officials.
With expected good growing this year, the average corn yield is forecast at 163.6 bushels per acre, about 40 bushels more than last year's average.
"A return to normal summer weather supports a sharp recovery for corn yields as fall and winter dryness have little correlation with conditions during the following growing season and eventual outcomes," USDA said.
The USDA currently forecasts domestic corn stocks at the end of the 2012-13 marketing year, which ends Aug. 31, will total 632 million bushels, while soybean stocks will total 125 million bushels. The USDA on Thursday predicted record harvests of both crops in the U.S. in the fall of 2013.
The new forecast for corn stockpiles left over from this year's production is expected to reach 2.177 billion bushels, more than triple the amount left over from last year's drought-ravaged production.
Foreign demand for U.S. corn will be strong in the 2013-14 marketing year, the USDA said. It raised its forecast for U.S. corn exports in 2013-14 to 1.5 billion bushels, up from an expected 900 million bushels in the current year.
Expected production increases this year should more than make up for rising demand, keeping prices low and U.S. corn competitive with foreign suppliers like Brazil.
"Global corn import demand is expected to jump in 2013-14 due to falling prices, continued economic expansion and growth in animal feed demand," USDA said.
The USDA also forecast wheat stocks at the end of the 2013-14 marketing year will total 639 million bushels. That would be down from the USDA's forecast for stocks at the end of the current marketing year, which ends May 31 for wheat, to total 691 million bushels.
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(END) Dow Jones Newswires
February 22, 2013 08:28 ET (13:28 GMT)
DJ UPDATE: USDA Sees 2013-14 U.S. Corn Stockpiles Leaping to 2.177 Billion Bushels->copyright