Market News & Headlines >> USDA Seen Raising Carryout Estimates
The grain trade is expecting to see small increases in USDA’s estimated of U.S. corn, soybean and wheat ending stocks for 2015-16 when the agency releases its monthly supply/demand update on Tuesday morning.
Sluggish export demand due to a strong dollar and ample competition has spurred expectations for possible cuts to U.S. exports. Tight ethanol processor margins and fading production have also spurred doubts about U.S. corn-for-ethanol use, while tightening crush margins and slow soymeal demand have raised doubts about the sized of the U.S. soybean crush.
Trade estimates of the 2015-16 U.S. corn carryout average 1.809 billion bushels, 7 million above USDA’s January forecast, in a range from 1.752-1.852 billion, according to a survey of 18 analysts by Reuters News Service.
Pre-report expectations for the U.S. soybean carryout average 445 million bushels, 5 million above USDA’s January forecast, in a range from 425-470 million.
On average, the trade expects the U.S. wheat carryout to come in at 947 million bushels, with estimates ranging from 931-975 million versus USDA’s January forecast of 941 million bushels.