Market News & Headlines >> U.S. Corn and Soybean Stocks Record Large
The quarterly USDA Grain Stocks report released last Thursday pegged March 1 stocks of both corn and soybeans above most trade estimates, suggesting USDA will project larger 2017/18 carryouts for both crops when it releases its monthly supply/demand update on April 10.
USDA reported March 1 U.S. soybean stocks of 2.107 billion bushels, compared with trade expectations that averaged 2.030 billion in a range from 1.810-2.110 billion bushels, according to a Reuters News Service survey of 25 analysts. The March 1 stocks were 368 million bushels or 21.2% above a year earlier and were the largest on record for the date.
The large March 1 stocks number combined with reduced prospects for U.S. exports assuming China goes ahead with its imposition of a 25% import tariff on imports of U.S. soybeans could mean a large increase in USDA’s projected old-crop soybean carryout.
March 1 corn stocks were pegged by USDA at 8.888 billion bushels, compared with trade estimates that averaged 8.706 billion in a range from 8.550-8.881 billion bushels. Corn stocks were 266 million bushels or 3.1% larger than a year earlier and were also a record high for the date.
USDA’s U.S. wheat stocks estimate was neutral for wheat prices. USDA pegged March 1 all-wheat stocks at 1.494 billion bushels, just 6 million above the average of trade estimates. Stocks were down 165 million bushels or 9.9% from a year earlier.