Market News & Headlines >> USDA Seen Cutting Soy Stocks; Raising Corn, Wheat
USDA Is expected to raise its forecasts for 2014-15 U.S. corn and wheat ending stocks, but trim the projected U.S. soybean carryout in Wednesday’s monthly supply/demand report.
Trade estimates of the U.S. soybean carryout average 427 million bushels in a range from 400-455 million bushels compared with USDA’s November forecast of 450 million. Strong soybean sales and shipments have the soybean trading looking for USDA to raise projected U.S. exports. U.S. export sales commitments have already reached 85% of USDA’s current export forecast of 1.720 billion bushels.
Pre-report expectations for U.S. corn ending stocks average 2.027 billion bushels in a range from 1.905-2.156 billion, compared with USDA’s November estimate of 2.008 billion. A slow export pace is one reason the trade is anticipating a higher carryout number, but U.S. corn export sales have improved three weeks in a row, which may keep USDA from lowering its export forecast. Record high ethanol production could also trigger a further increase in expected U.S. corn-for-ethanol usage.
Trade estimates of the 2014-15 U.S. wheat carryout average 654 million bushels in a range from 642-681 million bushels compared with USDA’s November estimate. USDA could potentially cut projected wheat exports slightly due to a slow shipment pace, or could trim projected feed usage due to recent wheat price strength.