Market News & Headlines >> USDA Seen Raising Soybean, Wheat Stocks
Wednesday’s monthly USDA supply/demand update is expected to show higher 2016/17 soybean and wheat ending stocks and a slightly lower corn carryout.
Trade estimates of the 2016/17 U.S. soybean carryout average 413 million bushels in a range from 325-517 million, compared with USDA’s September estimate of 365 million bushels, according to a Reuters News Service survey of 23 analysts. Larger U.S. production is expected to overshadow strong demand.
Pre-report expectations for the 2016-17 U.S. wheat carryout average 1.153 billion bushels in a range from 1.050-1.400 billion versus USDA’s September estimate of 1.100 billion bushels. USDA’s higher-than-expected Sept. 1 wheat stocks estimate has spurred expectations for a cut to projected 2016/17 wheat feed/residual use.
On average, the grain trade expects USDA to peg this year’s U.S. corn carryout at 2.359 billion bushels, down a modest 25 million bushels from USDA’s September estimate of 2.384 billion. Trade carryout estimates range from 2.181-2.662 billion bushels. A modest cut to U.S. production is expected to lower the carryout.