Reports released by the United States Department of Agriculture Monday were a little bullish for corn, bearish for soybeans and mixed for wheat.
After the report soybeans future fell more than two percent, giving back ground built up from the multi-day pre report rally.
Corn edged slightly higher after the USDA report. Wheat was a little lower.
USDA’s estimates for U.S. and world corn stocks at the end of the crop year were less than the average of trade expectations.
In soybeans, the year end estimate of US stocks was unchanged at 410 million bushels but the trade, on average, had expected only 393 million.
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USDA’s world soybean year end stocks forecast came in at 90.78 million tonnes, up from the trade’s average expectation of 89.35 million.
USDA increase its forcast for Brazil’s soybean crop to 95.5 million tonnes, up from 94 million last month. On average the trade expected 94.60 million.
The USDA’s forecast of U.S. winter wheat acreage was bullish, but its forecast for domestic and the world supply at the end of the crop year were bearish.
U.S. farmers cut their winter wheat plantings by 4.6 percent to 40.452 million acres, below forecasts ranging from 41 million to 44 million. A year ago, winter wheat plantings were 42.399 million acres.
“Even if China continues the (soybean import) pace that they’re on, they’re not going to make a significant dent in our ending stocks,” said Joe Lardy, a research analyst at CHS Hedging.
“And given that Brazil looks to be pushing out a record crop, we’re going to have adequate ample soybean supplies going forward, so the soybean prices should be going down.”
USDA pegged the total U.S. soybean crop at a record 3.969 billion bushels, based on an average yield of 47.8 bu. per acre, also a record.
USDA trimmed its U.S. corn harvest view to 14.216 billion bu. from 14.407 billion and the average yield to 171.0 bu. per acre from 173.4. Analysts had been expecting a corn harvest of 14.349 billion bu. and an average yield of 173.3.
