Market News & Headlines >> USDA Cuts Soybean Stocks, Raises Exports
As expected, USDA cut its U.S. and world soybean carryout forecasts in Friday’s monthly supply/demand report, raising projected U.S. exports due to South American crop issues.
USDA pegged the 2015/16 U.S. soybean carryout at 370 million bushels, down from a May estimate of 400 million and toward the low end of pre-report estimates that averaged 385 million bushels in a range from 355-400 million. USDA raised projected old-crop exports by 20 million bushels and also hiked the expected U.S. crush by 10 million.
Friday’s report pegged the 2016/17 U.S. soybean carryout at 265 million bushels, down from a May forecast of 305 million, compared with trade estimates that averaged 289 million bushels in a range from 215-350 million. USDA raised projected 2016-17 U.S. exports by 10 million bushels to a record 1.900 billion.
In its world supply/demand balance sheet for 2015/16, USDA pegged ending stocks at 72.29 million metric tons, down from 74.25 million in May, but in line with trade expectations that averaged 72.73 million tons in a range from 70.00-74.00 million. USDA cut its forecast for Brazil’s 2015/16 soybean crop to 97.00 million tons from 99.0 million in May.
USDA put the 2016/17 world soybean carryout at 66.31 million tons, down from 68.21 million in May, but in line with trade estimates that averaged 66.31 million tons in a range from 65.00-68.01 million.