Market News & Headlines >> USDA Seen Lowering Corn Carryout on Chinese Demand
USDA is expected to lower its estimate of the 2020-21 U.S. corn carryout due to strong export demand from China when it releases its monthly Supply/Demand report on Friday morning.
Trade estimates of 2020-21 U.S. corn ending stocks avg. 1.379 billion bushels in a range from 1.200-1.550 billion compared with USDA's April forecast of 1.502 billion bushels, according to a Bloomberg News survey.
USDA is expected to raise projected exports from the current level of 2.600 billion bushels following China’s latest U.S. corn buying spree during March. U.S. corn export shipments have been running above the level needed to reach USDA’s forecast since mid-February.
Little change is expected in U.S. soybean ending stocks, which are already forecast to be very tight. Trade expectations for 2020-21 U.S. soybean ending stocks ahead of average 118 million bushels in a range from 105-135 million, compared with USDA's March forecast of 120 million bushels. USDA’s March 1 soybean stocks number, however, was above the average of trade expectations, which suggests potential for a small increase in ending stocks.
USDA is expected to raise its estimate of the 2020-21 U.S. wheat carryout slightly, based on its March 1 wheat stocks estimate, which was toward the high end of trade expectations. Trade estimates of 2020-21 U.S. wheat ending stocks average 846 million bushels in a range from 827-877 million compared with USDA's March forecast of 836 million bushels.