Market News & Headlines >> USDA Slashed Domestic Corn Carryout, Hikes World Wheat Ending Stocks
The USDA’s April supply and demand cut U.S. corn ending stocks much more than expected thanks to a 125 million-bushel increase in projected exports, although prices have reacted negatively amid pressure from wheat.
The USDA’s world wheat ending stocks estimate was bearish. Other domestic and global carryout projections were mostly in line with pre-report expectations. Here’s a rundown:
CORN: USDA projected a U.S. carryout of 1.3 billion bushels, below the average trade estimate of 1.403 billion and down from USDA’s March estimate of 1.456. Analyst estimates had ranged from 1.306 to 1.478 billion.
USDA projected the world carryout at 158 MMT, down slightly from 158.47 MMT last month and up slightly from the average trade estimate of 157.72 MMT.
SOYBEANS: USDA’s domestic carryout projection of 135 million bushels is down from 145 million last month and below the average analyst estimate of 139 million. Survey estimates had ranged from 125 million to 147 million.
USDA’s world carryout projection of 69.42 MMT is down from 70.64 MMT last month and below the average trade estimate of 70.14 MMT.
WHEAT: USDA’s projected wheat ending stocks of 583 million bushels is up from from 558 million last month and matched the average analyst estimate of 583 million. Pre-report estimates had ranged from 553 million to 625 million.
World ending stocks were projected at 186.68 MMT, up from 183.81 MMT last month and well above the average analyst guess of 183.65 MMT. Estimates had ranged from 182.5 MMT to 185.3 MMT.
COTTON : USDA lowered its U.S. carryout projection to 2.5 million bales, down From 2.8 million last month. The reduction was expected following last month’s cotton ginnings report. USDA lowered production to 12.87 million bales, from 13.19 million bales last month. Old crop world ending stocks were projected at 96.9 million bales, up slightlyfrom 96.8 million last month.