Market News & Headlines >> USDA Raises U.S. Corn, Wheat Carryouts
USDA on Tuesday raised its estimates for 2018/19 U.S. corn and wheat ending stocks, as expected, and lowered its soybean carryout marginally in its monthly supply/demand update.
Larger-than-expected March 1 stocks of corn and wheat revealed in USDA’s quarterly Grain Stocks report had traders looking for the agency to cut its 2018/19 usage estimates and raise ending stocks for both crops.
USDA pegged the 2018/19 U.S. corn carryout at 2.035 billion bushels, up 200 million from its March forecast and toward the high end of pre-report trade estimates that averaged 1.991 billion bushels in a range from 1.870-2.135 billion. As expected, USDA cut corn feed/residual use based on the March 1 stocks total and trimmed projected corn-for-ethanol use and exports based on the pace of usage for the year to date and stiffer-than-expected export competition.
USDA pegged the 2018/19 U.S. wheat carryout at 1.078 billion bushels compared with trade expectations that averaged 1.072 billion bushels in a range from 1.045-1.100 billion. As expected, USDA cut wheat feed/residual use based on the March 1 stocks total and cut projected exports further based on the slow pace of shipments to date.
USDA cut its forecast for the U.S. soybean carryout from March by a modest 5 million bushels to 895 million bushels, which compared with trade expectations averaging 898 million bushel in a range from 845-935 million bushels.