Market News & Headlines >> USDA Expected to Slash Corn, Soy Ending Stocks
USDA is expected to lower its U.S. corn and soybean carryout forecasts for the 2019/20 marketing year substantially due to smaller-than-expected old-crop stocks and lower new-crop production when it releases its monthly supply/demand update on Thursday morning.
The agency is expected to raise its projected U.S. wheat carryout, however, because of larger-than-expected Sept. 1 U.S. wheat stocks.
Pre-report trade estimates of U.S. 2019/20 corn ending stocks average 1.682 billion bushels, 508 million below USDA’s September projection of 2.190 billion bushels, in a range from 1.257-1.993 billion bushels, according to a survey of 28 analysts by Bloomberg News. At the average of trade estimates, the U.S. corn carryout would be the smallest since 2013/14, when it was just 1.232 billion bushels.
Pre-report expectations for 2019/20 U.S. soybean ending stocks average 496 million bushels, 144 million below USDA’s September forecast of 640 million, in a range from 342-584 million bushels. At the average of trade expectations, soybean ending stocks would be down 417 million bushels or nearly 46% from 2018/19, but would still be 58 million bushels larger than the 2017/18 carryout.
Trade expectations for U.S. wheat ending stocks average 1.011 billion bushels in a range from 939 million-1.054 billion compared with USDA’s September forecast of 1.014 billion bushels.