Corn Stocks Seen Rising to 15-Year High by IGC as Output Grows

March 28th, 2014

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Category: Grains, Oilseeds

(Businessweek) – Corn stockpiles may rise to the highest in 15 years by the end of the 2014-15 season as world output of the grain is predicted to advance, beating usage for a second season, the International Grains Council said.

Global corn production may rise to 961 million metric tons from 959 million tons this season on increased planting, the London-based IGC wrote in an e-mailed report today. Inventories may rise to 171 million tons at the end of 2014-15 from 155 million tons at the end of this season, the IGC wrote.

Chicago corn futures have slumped 33 percent in the past 12 months, the worst performance on the S&P GSCI gauge of 24 raw materials, as production in the U.S., the biggest grower, recovered from drought in 2012.

“A bumper crop in 2013-14 should allow for some stock building, with a sharp rise in supplies more than offsetting strong gains in use,” the IGC wrote. “Preliminary projections for 2014-15 indicate a slight expansion in area.”

The world is predicted to use 945 million tons of corn next season from 931 million tons in 2013-14, the report showed. Stockpiles had fallen by 4 million tons to 127 million tons at the end of 2012-13.

“Led by a steep increase in the U.S., world closing stocks are forecast to expand again in 2014-15, potentially to the highest level in 15 years,” the council wrote.

World wheat production is projected to slip to 700 million tons from 709 million tons, while stocks of the grain will be unchanged at 190 million tons. The IGC raised its outlook for the 2014-15 wheat harvest from 696 million tons a month ago.

 

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