Market News & Headlines >> Few Changes Expected in U.S. Balance Sheets
Thursday morning’s monthly supply/demand update from USDA is not expected to show significant changes in the agency’s U.S. corn, soybean or wheat carryout estimates for 2016/17.
Trade estimates of the U.S. corn carryout average 2.321 billion bushels, 1 million above USDA’s February estimate, in a range from 2.245-2.440 billion bushels, according to a survey of 30 analysts by Bloomberg News.
Pre-report trade expectations for the U.S. soybean carryout average 415 million bushels, 5 million below USDA’s February estimate in a range from 395-444 million bushels.
On average, the trade sees the U.S. wheat carryout at 1.142 billion bushels, 3 million above USDA’s February projection, in a range from 1.120-1.199 billion bushels.
USDA could potentially raise its forecast for U.S. corn exports; with export sales and shipments remaining strong, and could also raise projected corn-for-ethanol use a bit further based on 2016/17 usage to date. However, USDA is likely to be cautious about raising projected exports due to prospects for a sharp increase in competition from South American supplies in coming months.
Likewise, USDA is unlikely to raise projected U.S. soybean exports further amid rising expectations for Brazilian production and export potential.