According to the USDA’s Grain Stocks report, corn stocks soared 30 percent higher from March 2013 to 7.01 billion bushels. Of those, 3.7 billion bushels are stored on farms – 45 percent above the on-farm stocks in 2013.
Monday’s report also showed off-farm stocks at 3.2 billion bushels, up 15 percent from last year. The USDA indicated a disappearance of 3.5 billion bushels of corn for the December 2013 to February 2014 quarter, compared to 2.6 billion bushels during the same period.
Soybean stocks dipped 1 percent lower from March 2013 to 992 million bushels. Soybean stocks stored on farms dropped by 16 percent to 382 million bushels, while off-farm stocks climbed to 610 million bushels. Indicated disappearance for the December 2013 to February 2014 quarter totaled 1.16 bllion bushels, up 20 percent from the same period last year.
Both corn and soybean grain stock estimates were within the range anticipated by traders last week. However, there was still an air of uncertainty surrounding the Grain Stocks report and how it will impact the markets.
“A stocks estimate that would be neutral for corn prices is one that implied that feed and residual use of corn during the first half of the marketing year supported the USDA’s forecast of 5.3 billion bushels of feed and residual use for the entire marketing year. Even that calculation is difficult to make, however,” University of Illinois marketing specialist Darrel Good said in a FarmGate blogpost.