Corn Pile Biggest Since 1994 as Crop Overwhelms

January 9, 2014

Stockpiles of U.S. corn are increasing at the fastest rate in 19 years. Inventories of U.S. corn as of December 1st totaled 10.764 billion bushels or 273.4 million metric tons – 34% more than a year earlier, and the biggest gain for a December 1st inventory since 1994.  A survey of 30 analysts shows that the 2013 U.S. corn crop totaled 14.06 billion bushels – exceeding the December estimate by the U.S. Department of Agriculture (USDA) of 13.989 billion bushels and 30% more than 2012, with Macquarie Group Ltd. estimating a crop of 14.255 billion bushels – 32% higher than 2012.  Low prices, increased meat buying among emerging global markets, a predicted 20% increase in feed demand, a predicted rebound in the Ethanol industry of 6.5%, and a doubling of corn imports by China to a record 7 million tons should all help boost the demand for corm which is forecast to increase for an 18th consecutive year to a record 936.73 million tons – up 44% from a decade ago.  To read more about predictions for the corn market, future corn planting acreage, and domestic U.S. livestock industry conditions that will likely affect corn: