Market News & Headlines >> USDA Seen Cutting Corn, Soy Carryout Forecasts
USDA is expected to further reduce its old-crop and new-crop U.S. carryout forecasts for corn and soybean futures in Friday morning’s monthly supply/demand report, but is seen raising its wheat carryout estimates.
Trade estimates of the 2015-16 U.S. corn carryout average 1.772 billion bushels in a range from 1.728-1.820 billion, compared with USDA’s May forecast of 1.803 billion bushels, according to a survey of 20 analysts by Reuters News Service. USDA is widely expected to boost its forecast for 2015-16 U.S. corn exports due to the short crop in Brazil and could raise 2016-17 exports as well.
Pre-report estimates of the 2015-16 U.S. soybean carryout average 385 million bushels in a range from 355-400 million compared with USDA’s May projection of 400 million bushels. Expectations for the 2016-17 carryout average 289 million bushels in a range from 215-350 million bushels versus USDA’s May forecast of 305 million. USDA is expected to raise its U.S. export projections due to crop problems in Argentina and Brazil.
Trade expectations for USDA’s 2015-16 wheat carryout average 981 million bushels, 3 million above USDA’s May estimate in a range from 953 million to 1.00 billion bushels. Expectations for USDA’s 2016-17 wheat carryout average 1.045 billion bushels in a range from 1.007-1.100 billion compared with USDA’s May projection of 1.029 billion bushels. USDA is expected to raise 2016 U.S. wheat production due to strong winter wheat crop condition ratings.