U.S. corn inventories entered the new marketing year sharply higher than a year ago, adding another bearish factor for producers as harvest gets underway.
The U.S. Department of Agriculture reports old-crop corn stocks totaled 2.10 billion bushels as of Sept. 1, up 35% from the same time last year.
Of that total, about 787 million bushels were stored on farms, an increase of 22% from a year earlier. Off-farm corn stocks climbed even more sharply, rising 44% to 1.31 billion bushels.
Corn disappearance during the June-through-August quarter totaled 3.20 billion bushels, slightly above the same period last year.
The picture was different for other major crops. Soybean stocks were down 3% from a year earlier, while all-wheat stocks fell 14% to 1.85 billion bushels.
The larger corn carryout means more old-crop supplies are available as newly harvested corn begins moving into elevators and storage. That adds to supply pressure as farmers monitor cash and futures prices during the fall harvest.
The higher inventories could also influence producers' storage and marketing decisions as they weigh current prices against the possibility of stronger prices later in the marketing year.