Market News & Headlines >> USDA Seen Cutting World Corn, Soy Stocks

USDA is expected to cut its forecasts for world corn and soybean ending stocks in Thursday’s monthly supply/demand update due to the ongoing drought in Argentina. 

A further increase in the size of Brazil’s soybean crop is expected to at least partially offset any downgrade in Argentina’s soy production. However, indications of lower second-crop corn plantings in Brazil could cause USDA to lower its Brazilian corn production forecast. 

Trade estimates of world corn ending stocks average 198.9 million metric tons in a range from 191.0-204.0 million tons compared with USDA’s February estimate of 302.1 million tons. 

Expectations for Argentina’s corn crop average 36.5 million metric tons in a range from 33.0-36.5 million compared with USDA’s February estimate of 39.0 million and last year’s crop of 41.0 million metric tons. On average, the trade sees Brazil’s corn production at 91.6 million tons, with estimates ranging from 86.2-95.5 million tons compared with USDA’s February estimate of 95.0 million tons and last year’s record large crop of 98.5 million. 

Pre-report expectations for world soybean ending stocks average 95.5 million tons in a range from 93.1-98.0 million versus USDA’s February forecast of 98.1 million tons. 

Trade estimates of Argentina’s soybean crop average 48.5 million metric tons in a range from 45.0-53.5 million compared with USDA’s February forecast of 54.0 million tons and last year’s crop of 57.8 million.  Expectations for Brazil’s soybean crop average 113.9 million tons in a range from 112.0-116.0 million tons compared with USDA’s February estimate of 112.0 million and last year’s record large crop of 114.1 million tons.