Market News & Headlines >> USDA Raises World Carryout Estimates
Friday’s monthly USDA supply/demand update provided further evidence of large grain supplies as USDA raised its world corn, soybean and wheat carryout estimates more than the trade expected.
Meanwhile, the report contained little news on the domestic side as USDA left its U.S. supply/demand numbers for corn, soybeans and wheat unchanged from November while making small revisions to its 2016/17 price forecasts for those crops.
USDA pegged the world corn carryout for 2016/17 at 252.14 million metric tons, up 4.06 million tons from its November forecast and toward the high end of trade estimates that averaged 219.24 million metric tons in a range from 217.10-224.80 million tons. The increase in corn stocks came on an increase of 9.20 million tons in projected world production, which outweighed a 4.69-million-ton increase in expected usage.
USDA’s world soybean carryout forecast came in at 82.85 million tons, up 1.35 million tons from its November forecast, compared with trade estimates that averaged 81.31 million tons in a range from 78.10-83.00 million. USDA revised world soybean production upward by 1.91 million tons.
USDA raised its world wheat carryout by 2.91 million tons from November to a record large 252.14 million tons compared with trade estimates that averaged 250.33 million tons in a range from 249.00-252.60 million tons. An increase of 6.54 million tons in expected world production outweighed a 3.25-million-ton rise in projected world usage.