Market News & Headlines >> USDA Corn, Soybean Carryouts Bearish
USDA raised its estimates of 2016-17 U.S. corn and soybean ending stocks on Wednesday as larger production forecasts for both crops outstripped increases in projected usage.
The grain trade was expecting a higher U.S. soybean carryout, but had anticipated a modest cut to projected corn stocks. USDA also boosted its world ending stocks forecasts for both corn and soybeans.
USDA pegged the 2016-17 U.S. corn carryout at 2.403 billion bushels, up 3.6% from its October forecast of 2.320 billion. The USDA projection compared with trade estimates that averaged 2.300 billion bushels in a range from 2.143-2.669 billion bushels.
A 169-million-bushel increase in expected corn production more than offset an 85-million-bushel increase in expected food/seed/residual use, which included a 25-million-bushel hike in projected corn-for-ethanol use.
USDA raised its forecast for the 2016/17 U.S. soybean carryout by 21.5% to 480 million bushels from its October forecast of 395 million. The new carryout forecast topped trade expectations that average 420 million bushels in a range from 381-467 million.
A 92-million-bushel increase in expected U.S. production drove the increase, with USDA raising its projection for U.S. soybean usage by only 7 million bushels. USDA boosted projected U.S. exports by another 25 million bushels to a record 2.050 billion, but also cut its projected U.S. crush by 20 million bushels.