Market News & Headlines >> USDA Lowers Corn Carryout as Expected
Friday’s USDA monthly Supply/Demand report confirmed trade expectations for a significant cut to USDA’s forecast for the 2021/22 U.S. corn carryout, while showing a modest increase in old-crop wheat ending stocks.
USDA pegged the 2020/21 U.S. corn carryout at 1.352 billion bushels, down 150 million from its April forecast, raising projected U.S. exports by 75 million bushels, corn-for-ethanol use by 25 million and feed/residual use by 50 million. The new USDA estimate was toward the low end of trade expectations, which averaged 1.379 billion bushels in a range from 1.200-1.550 billion.
Corn feed/residual use was raised based on the March 1 corn stocks number and for USDA raised projected exports based on record large March corn export inspections that surpassed the previous high set in November 1989.
USDA left its 2020-21 U.S. soybean carryout estimate unchanged from March at 120 million bushels, but adjusted its usage numbers, raising projected U.S. exports by 30 million bushels based on record exports for the first half of the marketing year and lowering the U.S. crush by 10 million bushels, while cutting seed and residual use as well.
USDA raised its 2020-21 U.S. wheat carryout forecast by 16 million bushels to 852 million bushels, cutting projected feed/residual use by 25 million bushels based on the March 1 wheat stocks estimate and lowering projected U.S. exports by 10 million bushels based on a slower-than-expected import pace.