Corn inventories before the 2015 harvest in the U.S., the world’s largest grower and exporter, will rise more than analysts expected as production increased more than forecast.
Reserves on Aug. 31, 2015, will reach 1.726 billion bushels from 1.146 billion forecast this year, the U.S. Department of Agriculture said today in a report. Analysts in a Bloomberg survey expected 1.641 billion. Production in the season that starts Sept. 1 will total 13.935 billion bushels, compared with 2013’s record 13.925 billion bushels (353.7 million metric tons) and the 13.736 billion forecast by analysts.
Corn prices jumped 22 percent in 2014 through yesterday as exports surged and record cattle and hog prices boosted demand for the grain in animal feed. Futures in Chicago fell as much as 2.1 percent after today’s report.
“The surprise is the larger increase in global corn supplies,” Dale Durchholz, the senior market advisor for AgriVisor LLC in Bloomington, Illinois, said in a telephone interview. “Rising reserves is never bullish.”
On the Chicago Board of Trade, corn futures for July delivery fell 1.5 percent to $5.0875 a bushel at 11:54 a.m., heading for the biggest loss in a week.
Global inventories before the 2015 northern hemisphere harvest, will total 181.73 million tons, up from 168.42 million forecast for the end of this marketing year, the USDA said. Reserves were projected at 162.2 million tons, according to the average of 14 analysts surveyed by Bloomberg News.
Corn is the biggest U.S. crop, with a 2013 value of $62.7 billion, government figures show.