U.S. corn stocks to rise as export competition heats up


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CHICAGO, Dec 9 (Reuters) –

Domestic corn supplies will be bigger than previously thought as rising competition on the export market cuts into demand for U.S. shipments, the government said on Friday.

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U.S. stocks of corn will total 1.257 billion bushels at the end of the 2022/23 marketing year, the U.S. Agriculture Department said in its monthly World Agricultural Supply and Demand Estimates report.

The report reflected Brazil’s growing stature as a corn exporter and slightly more exports expected from Ukraine after a Moscow-Kyiv deal brokered by the United Nations and Turkey.

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Analysts had been expecting the report to show corn ending stocks of 1.237 billion bushels, according to the average of estimates in a Reuters poll. In November, USDA had forecast corn ending stocks of 1.182 billion bushels.

The government left its outlooks for soybean and wheat stocks unchanged, with wheat seen at a 15-year low of 571 million bushels and soybeans projected at a seven-year low of 220 million bushels.

Corn futures at the Chicago Board of Trade [0#C:] slipped back close to unchanged after trading in positive territory throughout the morning.

The government cut its outlook for U.S. corn exports by 75 million bushels to 2.075 billion.

“We’ve been running behind pace, so I wouldn’t be surprised if we see that the exports will continue to come down,” StoneX grain broker Craig Turner said.

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USDA raised its outlook for exports from war-torn Ukraine to 17.5 million tonnes from 15.5 million but left its projections for shipments from South American unchanged even with Brazil projected to produce a record 126.0 million tonnes of corn.

USDA also forecast that Argentina’s corn harvest would come in at 55.0 million tonnes, unchanged from its November outlook and up 6.8% from a year ago, despite a worst-in-decades drought.


Argentine drought

prompted a reduction in the country’s wheat harvest outlook to 12.50 million tonnes from 15.50 million tonnes, USDA said. (Reporting by Mark Weinraub; Editing by Richard Chang)


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