The corn harvest will hit a record 13.935B bushels this year, says the USDA in its latest report, bringing U.S. stockpiles to 1.726B bushels, higher than analyst forecasts. Global stockpiles will jump 8% to 181.7M metric tons thanks in part to big crops in Ukraine and Brazil.
Analysts were taken by surprise by the big U.S. supply figure given farmer intentions of planting 4M fewer acres than last year, but the USDA is banking on normal weather, seeing the harvest at 165.3 bushels/acre, up 6.5 bushels from a year ago. "These are big, bearish numbers," says a futures broker, but "we still have to go out and produce the crop."
July corn is off 7 cents to $5.09 per bushel. CORN -2%
July wheat is off 7.25 cents to $7.28 per bushel after the USDA pegs global inventories at 187.4M metric tons, up from 186.5M for the current season. WEAT -0.8%
July soybeans are higher by 17.5 cents to $14.87 per bushel after the USDA cuts its stockpile estimate to 130M bushels from 135M. The agency sees production this crop year at 3.635B bushels from 3.289B a year ago. SOYB +0.5%