Agriculture department increases corn ending stocks projection

The U.S. Department of Agriculture on Wednesday raised its 2014/15 end stocks projection to 1.876 billion bushels from 1.851 billion bushels.

The agency cited cited a 25 million bushel cut to the outlook for corn used for ethanol as the reason for the increased corn supplies.

The USDA also raised its 2015/16 end stocks projection for corn to 1.771 billion bushels from 1.746 billion bushels.

The government maintained its existing estimates for U.S. corn production this year, pegging output at 13.63 billion bushels, lower than analysts' estimates for 13.651 billion bushels.

Corn futures for July delivery fell 7 and a quarter cents, or 2 percent, to $3.57 and three-quarters a bushel at the Chicago Board of Trade.

Soybean end stocks for the 2014/15 marketing year were reduced to 330 million bushels from 350 million bushels. For the 2015/16 marketing year, end soybean end stocks were cut by 25 million bushels to 475 million bushels.

The government boosted its projections for domestic soybean crushings and soymeal use despite an avian flu outbreak in the Midwest that has forced poultry producers to destroy around 40 million birds.