Demand, or lack of demand, will be the big factor in Friday’s USDA supply and demand update as analysts, on average, see the Ag Department raising domestic ending stocks projections for corn and wheat.
Via Dow Jones Newswires, corn ending stocks are pegged at 615 million bushels, compared to 602 million in January, due to declining export and ethanol demand. Projections range from 502 million to 667 million bushels. 2011/12 corn ending stocks were 989 million bushels.
Wheat ending stocks are estimated at 728 million bushels, compared to 716 million a month ago, because of slow world demand for U.S. supplies. Analysts’ expectations run from 706 million to 783 million bushels. At the end of the previous marketing year, wheat ending stocks were 743 million bushels.
Soybean ending stocks are seen at 129 million bushels, compared to 135 million last month, thanks to comparatively better demand. Pre-report estimates range from 115 million to 140 million bushels. 2011/12 soybean ending stocks totaled 169 million bushels.
USDA will also be updating global supply and demand tables and analysts anticipate fairly small month-to-month changes. World corn ending stocks are estimated at 115.74 million tons, compared to 115.99 million last month, soybeans are pegged at 59.22 million tons, compared to 59.46 million in January, and wheat is projected at 175.54 million tons, compared to 176.64 million a month ago.
On average, analysts see Brazil’s soybean crop at 83.1 million tons, compared to USDA’s January guess of 82.5 million, and Argentina’s soybean crop is projected at 53.0 million bushels, compared to 54 million in the prior update. Brazil’s corn crop is pegged at 71.1 million tons, compared to 71.0 million a month ago, and Argentina’s corn crop is estimated at 26.6 million tons, compared to 28.0 million last month.
The report is out Friday, February 8 at Noon Eastern/11 AM Central.