Market News & Headlines >> USDA Raises Corn, Wheat Ending Stocks
Friday’s monthly supply/demand report from USDA showed larger U.S. corn and wheat ending stocks for 2018/19 than most market observers expected amid slower-than-expected demand.
The projected U.S. corn carryout was raised by USDA to 1.835 billion bushels, up 100 million from its February estimate and at the high end of trade expectations that averaged 1.751 billion bushels in a range from 1.685-1.835 billion bushels, according to a survey of 27 analysts by Bloomberg News.
USDA cut projected U.S. corn exports by 75 million bushels citing “diminished U.S. price competitiveness and expectations of increased exports for Brazil and Argentina”. USDA also trimmed its estimate of corn-for-ethanol use by 25 million bushels based on National Agricultural Statistics Service (NASS) monthly grain crushings data and the pace of weekly ethanol production during February.
USDA raised its projected U.S. wheat carryout for 2018/19 by 45 million bushels to 1.055 billion bushels compared with trade estimates that averaged 1.019 billion in a range from 990 million-1.050 billion bushels.
Projected U.S. wheat exports were slashed by 35 million bushels on stronger-than-expected export competition and reduced food use by 5 million bushels based on the latest flour milling data, USDA said. USDA also raised projected U.S. wheat imports by 5 million bushels.
USDA cut its expected 2018/19 U.S. soybean carryout forecast by a modest 10 million bushels to 900 million, increasing the projected U.S. crush by the same amount on higher domestic soymeal disappearance and a lower soybean meal extraction rate reported by NASS. USDA’s carryout estimate compared with trade estimates averaging 904 million in a range from 852-944 million bushels.