USDA Cuts Corn Inventory Estimates

The U.S. unexpectedly cut its estimate for 2014 corn inventories after a price slump to a three-year low boosted global demand.

Corn reserves on Aug. 31 will be 1.456 billion bushels, down from 1.481 billion bushels forecast in February, the U.S. Department of Agriculture announced in its current report. Analysts in a Bloomberg survey expected inventories to rise to 1.495 billion bushels, on average.

Stockpiles are forecast to rise from 821 million bushels a year earlier after domestic production jumped last year. Exports will be 1.625 billion bushels, compared with 1.6 billion estimated in February, the USDA said.