April’s USDA report provided additional clarity to the U.S. and world supply and demand picture. U.S. corn supplies are down 50 million bushels, but world supplies are at 318 MMT at the high end of trade expectations. The USDA left South America corn production unchanged, including leaving Brazil’s production estimate at 124 MMT, vs Conab’s recently lowered estimate of 111 MMT.
The most significant surprise was the increase in U.S. soybean ending stocks, from 315 to 340 million bushels, at the very top end of trade estimates, and compared to last years 264 mil. bu. South America production was unchanged, and World Stocks were essentially unchanged from March.
No shock to the wheat, cotton or rice markets. Attention now turns to spring planting weather.
April USDA S&D – Market Edge with Richard Brock
