Market News & Headlines >> Modest Cuts to U.S. Ending Stocks Expected
The grain trade is looking for USDA to lower its estimates of 2019/20 U.S. corn, soybean and wheat ending stocks when it releases its monthly supply/demand report on Tuesday morning.
Trade estimates of 2019/20 U.S. corn ending stocks average 1.864 billion bushels in a range from 1.788-1.942 billion bushels compared with USDA’s January estimate of 1.892 billion bushels, according to a Reuters News Service survey of 21 analysts.
Pre-report estimates of 2019/20 U.S. soybean ending stocks average 443 million bushels in a range from 320-520 million bushels compared with USDA’s January estimate of 475 million bushels.
Trade expectations for U.S. wheat ending stocks average 954 million bushels in a range from 934-975 million compared with USDA’s January estimate of 965 million bushels.
Tuesday’s U.S. supply/demand balance sheets may not contain any big surprises for the grain and soybean markets as USDA will take a cautious approach in incorporating the U.S.-China phase-one trade agreement into its supply/demand projections.
While the broad goals of the deal will be considered, details have not been released, so USDA analysts do not know if there are specific purchase commitments for individual U.S. agricultural products, USDA Chief Economist Robert Johansson told Reuters last week.