September 3, 2014
World corn stocks up 17 million tonnes on-year
The International Grains Council has projected world grain stocks at levels not seen since 1987-88, with corn stocks rising 17 million tonnes on-year.
The intergovernmental group raised its estimate 3 million tonnes to 190 million tonnes for world cornstocks at the close of 2014-15. The group cites improved prospects for crops in Brazil, Europe and Ukraine.
"Northern hemisphere [corn] yield prospects continued to improve in August, including in the US, where crops have benefitted from a prolonged period of benign weather," the council said.
In the US, 73% of the crop was rated good or excellent by the USDA (as of August 24) and is on pace for record-breaking yields. While initially good for farmers, the high yields eventually depress prices and again affect farmers' earnings.