Market News & Headlines >> USDA Cuts Corn U.S. Carryout
Tuesday’s USDA monthly supply/demand update was mildly friendly for corn futures, but held little news for the soybean or wheat markets.
USDA pegged U.S. corn ending stocks for 2014-15 at 1.777 billion bushels, down 50 million bushels from its previous forecast, as it raised projected exports and feed use by 50 million bushels each, more than offsetting a cut of 50 million in corn-for-ethanol use. The new USDA forecast matched the low end of trade expectations.
USDA also cut its world corn carryout forecast to 185.28 million metric tons from a previous forecast of 189.64 million tons, cutting world production and the old-crop carry-in, while raising projected world usage. The USDA estimate was below the range of trade estimates.
The forecast range for the 2014-15 on-farm average price of corn rose slightly to $3.50-$3.90 from $3.40-$3.90 in February.
USDA made no changes whatsoever on its U.S. soybean supply/demand balance sheet. The world soybean balance sheet contained only very minor changes with USDA pegging the world soybean carryout at 89.53 million metric tons, up from a February forecast of 89.26 million and in line with trade estimates averaging 89.47 million tons.
There were only minor changes to in USDA’s U.S. wheat balance sheet, cutting its carryout forecast by 1 million bushels to 591 million and raising projected feed usage. USDA also narrowed its forecast for the on-farm average price of wheat to $5.90-$6.10 from $5.85-$6.15.
The world wheat balance sheet likely contained few changes with USDA pegging world wheat ending stocks at 197.71 million metric tons, down marginally from its February forecast of 197.85 million and in line with trade estimates that averaged 197.69 million.