USDA on Friday projected ending stocks for the 2016 corn crop at a12-year high of 1.98 billion bushels as lower prices for fertilizer and fuel should encourage more acreage and production.

Corn production went to 13.825 billion from 2015’s 13.6 billion. An expanding livestock sector should increase feed usage to 5.425 billion while ethanol use was unchanged from 2015 at 5.225 billion.

Corn exports were raised 50 million to 1.7 billion, but expected strong demand from South America limited that increase, USDA said.

USDA projected ending stocks at the Agricultural Outlook Forum. (Photo: ZoonarRF/Thinkstock)

Projected soybean stocks were trimmed 10 million bushels to 440 million as USDA lowered the crop to 3.81 billion from 2015’s 3.93 billion. Exports went to 1.825 billion from 1.69 billion and the crush increased to 1.9 billion from 1.88 billion.

The projections were released at USDA’s annual Agricultural Outlook Forum under way in Arlington, Virginia, through Friday. On Thursday at the Forum, USDA raised its projected planted acreage for corn 2% to 90 million acres and trimmed soybeans slightly to 82.5 million.

Ag Forum: 2016 corn acres raised to 90 million, soybeans flat at 82.5 million

Wheat ending stocks on Friday increased 2.3% to 989 million, a 29-year high, largely due to a 28% increase in beginning stocks. The rise in beginning stocks offset higher exports of 850 million and smaller production of 1.991 billion.

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