Market News & Headlines >> Lower Soybean, Wheat Carryouts Expected
The grain trade expects USDA to cut its estimates of U.S. soybean and wheat ending stocks, while raising its projected corn carryout for 2016/17 and 2017/18 in Wednesday’s monthly supply/demand update.
U.S. corn ending stocks are expected to be raised due to the larger-than-expected June 1 corn stocks reported by USDA on June 30. Trade estimates of 2016/17 U.S. corn ending stocks average 2.322 billion bushels in a range form 2.245-2.395 billion, compared with USDA’s June estimate of 2.295 billion bushels, according to a survey of 28 analysts by Bloomberg News.
Pre-report estimates of the 2017/18 U.S. corn carryout average 2.159 billion bushels in a range from 1.823-2.444 billion compared with USDA’s June projection of 2.110 billion bushels.
USDA is expected to lower projected U.S. soybean ending stocks as a result of the smaller-than-expected June 1 soybean stocks it reported. Pre-report expectations for the 2016/17 U.S. soybean carryout average 431 million bushels in a range from 390-471 million compared with USDA’s June forecast of 450 million bushels.
Trade estimates of the 2017/18 U.S. soybean carryout average 499 million bushels in a range from 385-661 million compared with USDA’s June estimate of 495 million bushels.
Although USDA’s Grain Stocks report showed larger-than-expected 2016/17 wheat ending stocks of 1.184 billion bushels, USDA is expected to lower its forecast for the 2017/18 carryout due to spring wheat crop losses. Trade estimates of the 2017/18 U.S. wheat carryout average 884 million bushels in a range from 757-957 million compared with USDA’s June estimate of 924 million bushels.