By Mark Weinraub
WASHINGTON, June 30 (Reuters) – U.S. soybeans and corn stocks ballooned from a year ago but were less than market forecasts as strong demand ate into supplies, the U.S. Agriculture Department said on Tuesday.
Wheat supplies were bigger than expected. U.S. wheat has struggled on the export market and weak prices for corn have cut demand for feeed wheat from domestic livestock producers.
Corn and soybean futures surged after the report was released, rallying to their highest since mid-January.
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“The numbers imply much stronger-than-expected third-quarter usage for corn and soybeans,” said Rich Nelson, chief strategist with Allendale Inc. “USDA will be forced to lower their ending stocks estimate on July 10.”
USDA said that domestic corn stocks as of June 1 stood at 4.447 billion bushels, the highest for that time of year since 1988 and the fifth highest on record. Corn usage from March through May totaled 3.303 billion bu., the second highest ever for the time period. A year ago, corn stocks were 3.852 billion bu.
Soybean stocks as of June 1 were 625 million bu., up from 405 million bushels a year earlier. The quarterly usage figure of 701 million bushels was the fourth biggest ever for the period.
Wheat stocks rose to 753 million bu. from 590 million a year ago.
Market watchers had been expecting corn stocks of 4.555 billion bu., soybean stocks of 670 million bu. and wheat stocks of 718 million bu., according to the average of estimates in a Reuters poll.
USDA also said that U.S. farmers planted a record 85.139 million acres of soybeans despite heavy rains that plagued seeding efforts in May and June. That compares with 83.701 million acres a year ago and was above the government’s March forecast of 84.635 million acres.
USDA said it would resurvey producers in some states where weather delayed seeding and if the numbers are much different it will post new figures in its Aug. 12 report.
Corn plantings were 88.897 million acres, down from 90.597 million acres last year and below the March forecast of 89.199 million. Corn acreage was the lowest since 2010.
All-wheat acreage was pegged at 56.079 million compared to 56.822 million last year and the USDA’s March estimate of 55.367 million.
Soybean futures posted sharp gains throughout June due to the planting delays. Corn and wheat also have rallied as the excessive rains raised concerns about crop quality.
