Por Mark Weinraub
CHICAGO, Apr 9 (Reuters) – U.S. corn supplies in the 2020/2021 season will be lower than anticipated, due to increased demand for ethanol production, animal feed and consumption from export sectors the Department of Agriculture (USDA) said on Friday.
The new forecast triggered a rally that sent corn futures in the Chicago grain plaza to their highest level in nearly eight years and highlighted a greater market expectation of the next crop that is currently being planted in the United States. .
In its monthly report with global harvest estimates, the USDA projected that domestic corn stocks will fall to 1.352 million bushels by September 1, up from 1.919 million bushels as of September last year.
The figure compares with the US government estimate issued in March of ending local stocks of 1.502 million bushels. The estimates of global corn ending inventories for this season were also adjusted downward.
If materialized, corn stocks would be the lowest seen in the United States in seven years before the next harvest.
Analysts had expected the April report to put US corn ending stocks in 2020/2021 at 1.396 million bushels, based on the average consensus estimate from a Reuters poll.
The USDA also raised its expectations for corn exports by 75 million bushels, to 2.28 billion bushels, which would represent a jump of 35.6% compared to the previous agricultural year.
The government increased its projection for corn to be used in ethanol production by 25 million bushels as drivers return to the highways with coronavirus restrictions easing. The projected consumption for livestock feed also increased, by 50 million bushels.
Regarding supplies in South America, he raised his projection for the Brazilian soybean harvest in 2020/2021, to 136 million tons, from 134 million tons of the previous forecast; while the calculation of soybean production in Argentina remained unchanged at 47.50 million tons.
(Edited in Spanish by Marion Giraldo)