Corn stocks in the United States are expected to grow sharply at the end of the 2020/21 season, while soybean stocks are expected to fall, the US Department of Agriculture (USDA) assessed this Friday, after predicting larger North American harvests this year.
The projection for the corn harvest pointed to an increase of 12.9% compared to last season, to 15.460 billion bushels, based on an average yield of 178.5 bushels per acre, according to the USDA.
“The outlook for U.S. corn in 2020/21 is for record production and domestic use, increased exports and higher inventories,” the department said, also noting that the total cereal supply forecast is at a record high.
The agency said the projected increased harvest comes as more farmers plant more corn compared to 2019, when extreme weather and widespread flooding prevented growers from planting millions of acres.
Feed and waste use was projected at 5.8 billion bushels, an increase of 275 million bushels from 2019/20.
The USDA predicts that the amount of corn destined for ethanol will be 5.575 billion bushels.
Ending stocks for the 2020/21 harvest were set at 2.637 billion bushels, an increase of 39.4% compared to the previous marketing year.
Corn exports are expected to rise to 2.1 billion bushels, from 1.725 billion, reflecting expectations of growth in global business, but with continued competition from other exporters, such as Brazil, Argentina and Ukraine.
For soybeans, the USDA estimated the harvest at 4.195 billion bushels, 17.9% higher than the previous marketing year, with plantings recovering from last year's weather-related drop.
Ending stocks would fall to 320 million bushels, 105 million bushels below the previous year, amid expectations of increased exports.
As for wheat, the harvest is estimated to be 1.836 billion bushels, compared to 1.920 billion in 2019/20. The USDA also forecasts ending stocks will reach 777 million bushels, up from 940 million in 2019/20.
Source: agrolink
