News

Higher crop estimates boost corn, soybean ending stocks

The USDA has increased its U.S. corn and soybean ending stocks estimates, while tightening the balance sheet for wheat.

Wheat ending stocks for the current marketing year are now seen at 571 million bushels, 5 million less than in October following an upward revision for food use against a slight cut in seed use. The average farm price for wheat is estimated at $9.20 per bushel, steady on the month and potentially up $1.57 from last marketing year.

The corn carryout is projected at 1.182 billion bushels, 10 million more than last month on higher production against a gain in feed use, with no change to ethanol or exports. The average farm price for corn is estimated at $6.80 per bushel, unchanged from last month and, if realized, $.80 more than the previous marketing year.

Soybean ending stocks are pegged at 220 million bushels, 20 million higher than a month ago, with USDA raising crop size and crush demand outlooks. The average farm price for soybeans is estimated at $14 per bushel, the same as October, and possibly $.70 above the prior marketing year.

The USDA’s world wheat production and ending stocks numbers were modestly higher with bigger crops in Australia and the United Kingdom canceling out losses in Argentina and the European Union.

Global corn ending stocks and crop size were slightly lower than in October following reductions in production for South Africa and the European Union against the higher U.S. estimate.

World soybean ending stocks were up on the month following a decline in domestic crush use, while production was down due anticipated decreases in Argentina, the European Union, and Mexico. The USDA did raise the soybean export guess for Argentina, while leaving Brazil unchanged, and left imports by China at 98 million tons.

The USDA’s next set of supply and demand estimates is out December 9^th.