Corn (CBOT:CN14) futures headed for the biggest decline since August as the U.S. government said domestic stockpiles will be larger than forecast.
Inventories on June 1 in the U.S., the world’s biggest producer, reached 3.854 billion bushels, after production rose to a record last year, the Department of Agriculture said today. The average estimate of 26 analysts surveyed by Bloomberg was 3.723 billion. Stockpiles a year earlier were 2.766 billion.
Prices fell 17 percent in the 12 months through June 27 on forecasts for increasing supplies. The outlook for bigger crops has helped to keep global food costs in check, with the United Nations saying world food prices fell in May for the second straight month.
Corn futures for December delivery fell 3.1 percent to $4.335 a bushel at 11:15 a.m. on the Chicago Board of Trade, heading for the biggest decline since Aug. 22, 2013.
Global grain stockpiles, excluding rice, are forecast to climb to a 15-year high by the end of the 2014-2015 season, the London-based International Grains Council said on June 26.
About 91.641 million acres were planted with corn, down from 91.691 million forecast in March, the USDA said, after surveying farmers this month. The average estimate of 26 analysts in a Bloomberg News survey was 91.709 million acres.