Market News & Headlines >> Stocks Report Indicates Stronger Soy Use
Tuesday’s quarterly USDA Grain Stocks Report implied 2013-14 soybean usage was stronger than previously thought, while suggesting slower corn and wheat usage.
USDA pegged Sept. 1 U.S. soybean stocks at only 92 million bushels, below the range of trade estimates and down from its earlier 2013-14 ending stocks projection of 130 million bushels. Ending stocks came in low even though USDA revised its estimate of the 2013 U.S. soybean crop upward by 69 million bushels to 3.558 billion bushels.
The stocks number and the higher production number imply 2013-14 soybean disappearance of 3.487 billion bushels, up from USDA’s previous estimate of 3.379 billion. USDA could revise its 2014-15 soybean usage forecasts upward due to the stronger old-crop usage, although it is already forecasting a solid increase in usage.
Sept. 1 U.S. corn stocks were reported by USDA at 1.236 billion bushels, compared with its previous estimate of 1.181 billion and trade estimates that averaged 1.185 billion in a range from 1.020-1.350 billion bushels.
USDA did not revise corn production, so the stocks estimate implies that 2013-14 corn disappearance was 55 million bushels smaller than USDA’s previous estimate of 13.60 billion bushels. USDA will most likely lower old-crop feed/residual usage to account for the difference.
Sept. 1 U.S. wheat stocks came in at 1.914 billion bushels compared with trade estimates averaging 1.880 billion bushels in a range from 1.707-1.980 billion and last year’s Sept. 1 stocks of 1.870 billion bushels. The higher-than-expected stocks imply that first quarter 2014-15 wheat feed/residual usage was smaller than expected.