Market News & Headlines >> USDA Cuts Corn, Wheat Ending Stocks
Contrary to trade expectations, USDA cut its estimates of 2014-15 U.S. corn and wheat ending stocks slightly in Monday’s monthly supply/demand update, leaving its soybean carryout forecast unchanged.
USDA pegged 2014-15 U.S. ending stocks at 2.008 billion bushels, down from its October estimate of 2.081 billion. Trade estimates of corn stocks averaged 2.135 billion bushel in a range from 1.850-2.282 billion bushels, according to a survey of 19 analysts taken by Reuters News Service.
The corn carryout shrunk almost solely due USDA’s smaller U.S. production estimate. USDA raised projected corn-for-ethanol use by 25 million bushels, but cut other food/seed/industrial use by 20 million bushels for a net increase in usage of just 5 million bushels. Projected exports and feed/residual use were unchanged.
USDA cut its 2014-15 wheat ending stocks estimate by 10 million bushels to 644 million bushels versus trade estimates that averaged 660 million bushels in a range from 634-682 million. The drop was the result of a cut in USDA’s 2014-15 production forecast. Several states were resurveyed on production after the Sept. 30 release of the Small Grains Summary report.
USDA kept its 2014-15 U.S. soybean carryout forecast at 450 million bushels, compared with trade estimates averaging 442 million in a range from 403-513 million bushels. USDA offset a 31-million-bushel increase in estimated production with increases in usage.
U.S. soybean exports were raised by 20 million bushels, based on a record pace for exports through late October, while the expected U.S. crush was raised 10 million bushels due to strong soymeal exports.