Market News & Headlines >> USDA expected to Cut Corn, Soy Carryouts on Smaller Crops
USDA is expected to cut its 2020/21 U.S. corn and soybean carryout projections in Friday’s monthly Supply/Demand report because of lower production of both crops resulting from the Aug. 10 derecho that swept through the Midwest and drought in the western Midwest.
Trade estimates of the 2020/21 U.S. corn carryout average 2.465 billion bushels, 291 million below USDA's August estimate of 2.756 billion bushels, in a range from 2.153-2.697 billion bushels, according to a Bloomberg survey of 28 analysts.
Pre-report estimates of the 2020/21 U.S. soybean carryout average 468.5 million bushels, 149.5 million below USDA's August estimate in a range from 379-551 million bushels.
Old-crop corn and soybean carryout estimates are not expected to change significantly. Trade expectations for the 2019/21 corn carryout average 2.233 billion bushels, just 5 million above USDA’s August estimate in a range from 2.128-2.343 billion. Expectations for the 2019/20 U.S. soybean carryout average 606 million bushels, 9 million below USDA’s August estimate in a range from 574-666 million bushels.
USDA is also not expected to change its 2020/21 U.S. wheat carryout estimate much. Trade estimates of the U.S. wheat carryout average 926 million bushels, only 1 million above USDA’s August forecast, in a narrow range from 900-978 million.