The US inventory data reflected expectations of US growers
achieving, besides large sowings, a record yield of 166.0 bushels per acre this
year, a figure 2.0 bushels per acre higher than the USDA's initial estimate.
The upgrade factored in "the rapid pace of planting and
emergence", Karis Gutter, acting US secretary of agriculture, said.
|Wasde corn estimates, change on year and (on market forecasts)|
2011-12 - US end stocks: 851m bushels, -277m bushels, (+102m bushels)
World end stocks: 127.56m tonnes, +3.13m tonnes, (+5.6m tonnes)
2012-13 - US end stocks: 1.881bn bushels, +1.030bn bushels, (+167m bushels)
World end stocks: 152.34m tonnes, +24.78m tonnes, (+15.54m tonnes)
Sources: USDA, ThomsonReuters poll
Furthermore, US corn exports, while seen rising 200m bushels
in 2012-13, will be limited by "record foreign corn supplies", Mr Gutter said.
Ukraine's crop was pegged at a record 24.0m tonnes, with
Argentina's forecast rebounding by 3.5m tonnes to 25.0m tonnes.
'Something wrong with that number'
The extra supplies were seen curtailing price prospects,
with US farmers seen receiving $4.20-5.00 a bushel for this year's corn, a
figure Mr Gutter acknowledged was "down sharply" from the $5.95-6.25 a bushel
they are set to receive for last year's crop.
At Teucrium Trading, Sal Gilbertie said: "This is a very
significant decrease. The entire US farm economy is going to have to adapt
quickly back to lower prices for corn."
Furthermore, the US stocks figure might, even at 1.8bn
bushels, still prove an underestimate, given that it includes a 900m-bushel
increase in feed and residual use, reversing a four-year downward trend.
"There is something wrong with that number. It is almost
going back to the days before distillers' grains," the byproduct of ethanol
manufacture used as an alternative to corn in animal feed.
In Chicago, corn for July plunged 3.3% to $5.87 ½ a bushel in
early live deals in Chicago.
The new crop December contract touched $5.05
a bushel at one point, its lowest since February last year, before closing at $5.07 ¼ a bushel, down 1.8% on the day.