Record-large corn and rice crops are forecast worldwide, with corn up 9 percent and rice up marginally. The wheat supply would drop by 2 percent and soybeans stocks will rise by 9 percent but still not as much as traders expected. It would be the sixth year in a row for record world corn production.
The U.S. Agriculture Department‘s first estimates for this year’s harvest and next year’s demand showed that domestic corn stocks will surge from a near record low this year to a seven-year high by September 2013, aided by expected record yields this year as farmers sprinted to plant an early crop.
USDA had less bountiful outlooks for other supplies, with domestic soybean inventories seen falling to 145 million bushels for the 2012/13 year from 210 million this year, with a stocks-to-use ratio “at a historically low 4.4 percent.”
Futures prices soared 1.9 percent for new-crop soybeans, the largest gain in 5-1/2 weeks at the Chicago Board of Trade. New-crop corn, for delivery in December, fell by 1.4 percent to $5.09-3/4 a bushel, the lowest price since March 2011.