USDA raises US, global year-ending corn stocks estimates for 2018-19 to above market expectations

The US Department of Agriculture projected Tuesday domestic corn stocks at the end of the 2018-2019 marketing year, which closes August 31, 2019, to be at 1.774 billion bushels (45.062 million mt), down 228 million bushels from its 2017-2018 estimates of 2.002 billion bushels but up 90 million bushels from its prior forecast for the period.USDA's domestic corn stocks estimates for the next marketing year was within the top end of the range of analysts' expectations of 1.477 to 1.785 billion bushels, but above the average analysts' expectations of 1.693 billion bushel, sources said.The increase in the 2018-2019 year-ending stocks projection reflected an increase in production due to a higher yield estimate."Corn production is forecast at 14.827 billion bushels, up 241 million from last month on an increased yield forecast," the USDA said. "If realized, the crop would be the second highest on record.""Corn supplies are higher from last month, as a larger crop more than offsets a small decline in beginning stocks due to higher estimated exports for 2017/18," the agency said. "Feed and residual use for 2018-2019 is raised 50 million bushels with a larger crop and lower expected prices."