By Mark Weinraub
WASHINGTON, Feb 10 (Reuters) – U.S. soybean supplies were tighter than expected due to rising demand on both the domestic and export fronts, according to government data released on Tuesday.
Domestic corn stocks also were forecast to be smaller than previously thought as increased usage by ethanol producers and the food, seed and industrial sector overcame reduced demand from the feed sector, the U.S. Agriculture Department said in its monthly supply and demand report.
USDA cut its 2014-15 U.S. corn ending stocks view by 50 million bushels to 1.827 billion bu., the fourth straight month it has lowered the projected carryover. For soybeans, USDA pegged 2014-15 U.S. end stocks at 385 million bu., down from 410 million bu. a month ago.
Read Also
U.S. grains: Corn, soybeans extend losses as Midwest weather looks crop-friendly
Chicago Board of Trade corn futures extended session losses on Tuesday, weighed down by forecasts for crop-friendly rain in U.S. grain belts this week.
The trade had been expecting corn ending stocks to come in at 1.879 billion bu. and soybean ending stocks of 398 million bu., according to the average of analysts’ estimates in a Reuters poll.
The government raised its estimate of soybean exports for the crop year to 1.79 billion bu., up 20 million bu. from a month ago, to reflect the record pace of oversas shipments through January. Domestic crushings were boosted to 1.795 billion bu., up 15 million from January.
The burgeoning demand also was seen cutting into world stockpiles of the oilseed. Global soybean ending stocks were lowered to 89.26 million tonnes from 90.78 million tonnes, smaller than market expectations for 90.44 million tonnes.
For corn, USDA raised domestic usage from both the ethanol and food, seed and industrial sectors by 75 million bu.. It cut feed and residual demand by 25 million bu..
USDA raised its outlook for domestic wheat ending stocks to 692 million bu., just five million bu. above its January view. That was slightly higher than the 689 million bu. forecast by the average of analysts’ estimates.
Fierce competition on the export market culled overseas demand for U.S. supplies, which have been deemed too expensive to compete. USDA slashed its U.S. wheat export projection by 2.7 percent to 900 million bu..
World ending stocks of wheat were raised to 197.85 million tonnes, bigger than expectations for 195.83 million tonnes. World corn ending stocks also were a bigger-than-expected 189.64 million tonnes, up from 189.15 million tonnes in January.
