Market News & Headlines >> USDA Raises Projected Corn, Soybean, Wheat Stocks

USDA in Friday’s monthly supply/demand update raised its estimate of 2017/18 U.S. corn ending stocks due to a further increase in the 2017 crop size and lower feed/residual usage indicated by Dec. 1 corn stocks. 

The Department also raised its estimate of U.S. soybean and wheat ending stocks due to lower projected usage. A cut to projected U.S. soybean exports outweighed a lower crop estimate, while USDA lowered projected wheat feed/residual use primarily based on the Dec. 1 wheat stocks total. 

USDA pegged 2017/18 U.S. corn ending stocks at 2.477 billion bushels, up from a December estimate of 2.437 billion bushels, raising its estimate of 2017 production by 26 million bushels to 14.604 billion bushels and cutting projected feed/residual use by 25 million bushels. Projected non-ethanol food/industrial use of corn was raised by 10 million bushels. Despite the higher projected carryout, USDA raised its forecast for the average on-farm price of corn by 5 cents on each end to $2.95-$3.55 based on observed prices in the marketing year so far. 

USDA lowered 2017 soybean production by 33 million bushels to 4.392 billion bushels, but raised its forecast for 2017/18 U.S. soybean ending stocks by 25 million bushels to 470 million, slashing projected U.S exports by 65 million bushels to 2.160 billion based on the slow pace of export sales and a larger Brazilian crop and exports. USDA, however, raised its projected U.S. soybean crush by 10 million bushels. 

U.S. wheat ending stocks for 2017/18 were pegged by USDA at 989 million bushels, up 29 million bushels from its December estimate of 960 million. USDA cut its forecast for wheat feed/residual usage by 20 million bushels to 100 million. USDA also cut food/seed use by 4 million bushels and raised projected imports by 5 million.