Market News & Headlines >> USDA Reports Friendly for Corn, Bearish Soybeans
Monday morning’s USDA reports contained supportive news for corn, but held bearish news for the soybean market and mixed news for wheat.
Lower USDA estimates of the 2014 corn crop and 2014/15 corn ending stocks were supportive for corn prices, while larger U.S. crop production and world stocks weighed on soybean prices. Larger-than-expected U.S. and world wheat ending stocks were bearish for prices, but lower-than-expected U.S. winter wheat seedings are supportive.
USDA pegged the 2014 corn crop at 14.216 billion bushels compared with its November forecast of 14.407 billion and trade expectations that averaged 14.349 billion bushels in a range from 14.171-14.554 billion, according to a Reuters News Service poll. USDA cut its forecast for 2014-15 U.S. corn ending stocks to 1.877 billion bushels versus a December estimate of 1.998 billion and trade estimates that averaged 1.927 billion bushels in a range from 1.710-2.081 billion.
USDA put the 2014 soybean crop at 3.969 billion bushels, against a November estimate of 3.958 billion and trade expectations averaging 3.956 billion bushels in a range from 3.844-4.020 billion. Projected U.S. soybean ending stocks for 2014-15 were unchanged from December at 410 million bushels versus trade estimates that averaged 393 million in a range from 355-452 million. USDA raised expected world ending stocks by 910,000 metric tons to 90.89 million metric tons versus trade estimates averaging 89.35 million tons in a range from 87.40-90.55 million.
Expected U.S. wheat ending stocks for 2014-15 were raised by USDA to 687 million bushels compared with the December estimate of 654 million and trade estimates that averaged 666 million bushels in a range from 636-699 million. World wheat ending stocks were pegged at 196.00 million metric tons versus the December forecast of 194.90 million and trade estimates that averaged 194.33 million tons in a range from 190.90-196.00 million.
However, U.S. winter wheat seedings for 2015 harvest were reported by USDA at just 40.5 million acres, down from 42.4 million a year earlier and trade estimates that averaged 42.564 million acres in a range from 41.000-44.000 million.