The USDA reduced U.S. corn and bean yield and production estimates even more than traders expected, giving us a solidly positive report for corn and beans. Wheat, not so much.
Soybean production was forecast at 4.17 billion bushels, down 98 million bushels on smaller yields. Soybean ending stocks were reduced by 100 million bushels from last month.
Foreign oilseed production was lowered 5.6 million tons to 473.3 million tons.
Corn production was forecast at 14.507 billion bushels, down 215 million bushels from last month, with yields cut to 175.8 bushels per acre. Corn exports were also raised by 325 million bushels to a total of 2.065 billion bushels ? a new record. Feed and residual use was cut by 75 million bushes and ending stocks were cut by 465 million bushels to 1.7 billion bushels, the smallest since 2013-14.
Global corn ending stocks were 291.4 million tons, down 9 million from last month.
Wheat usage was raised by 5 million bushels based on higher food use during the marketing year. Ending stocks were reduced by 6 million bushels to 877 million bushels.
China?s import pace continues to be robust and at 8.0 million tons, imports would be the largest since 1995/96. Projected 2020/21 world ending stocks are lowered 1.0 million tons to 320.5 million but remain record high.
Source: USDA, Reuters