Market News & Headlines >> USDA Report
Changes in the key U.S. ending stocks are minor: Wheat ending stocks are unchanged at 558 million. This is within the trade range of 549-615 and a little better than the 570 average. USDA added a dime to the low end of its season-average price range, making it $6.75-$6.95.
Corn ending stocks moved in the correct direction, dropping to 1.456 billion from February’s 1.481 billion on an export boost of 25 million bushels. The trade expected 1.488 (range 1.431-1.656). Price estimate was narrowed by a nickel at each end, now $4.25-$4.75.
Soybean ending stocks were reduced 5 million, to 145 million, slightly above the trade’s average of 141 but within the range of expectations (range 130-150). Soybeans saw the biggest change in price forecast, rising to $12.20-$13.70 from last month’s $11.95-$13.45.
World ending stocks were virtually unchanged for wheat at 183.82 MMT (vs. 183.73 last month and the average trade estimate of 183.65). Corn world ending stocks should be considered bearish, at 158.47, up from 157.3 last month and well above the 156.27 pre-report average expectation. Global soybean stocks, on the other hand, look positive, coming in at 70.64, down from 73.01 in February and well below the trade’s average of 71.46 (range 69.5-72.9).
Initial market reaction to the report is almost universally negative, with only cotton showing modest gains in a few futures contracts. See Midsession Comments for our initial reaction and this afternoon’s Market Update for Richard Brock’s in-depth analysis.