WASHINGTON (Reuters) – Surging export demand for U.S. corn will cut into
domestic stockpiles of the grain by more than expected, the U.S.
Agriculture Department said on Thursday.
But U.S. soybean stocks were forecast to rise as a bumper harvest in
Brazil will allow overseas buyers to source their oilseed purchases from
the South American nation.
USDA’s monthly supply and demand report pegged U.S. corn ending stocks
for the 2017/18 marketing year at 2.352 billion bushels, down from its
That fell below the low end of analysts’ forecasts that ranged from
2.425 billion bushels to 2.550 billion bushels, according to a Reuters
USDA boosted its U.S. corn export forecast for the year by 125 million
bushels to 2.050 billion bushels.
Soybean ending stocks were seen at 530 million bushels, USDA said, up
from the government’s January outlook for 470 million bushels. The
government lowered its U.S. soy export forecast to 2.100 billion bushels
from 2.160 billion bushels.
Estimates given in a Reuters poll for soybean ending stocks ranged from
460 million bushels to 535 million bushels.
USDA also raised its U.S. wheat ending stocks view to 1.009 billion
bushels from 989 million bushels due to lower exports. Wheat exports
were pegged at 950 million bushels compared to 975 million bushels in
January. Food use for wheat was raised by 5 million bushels.
In South America, USDA bumped up its estimate of the Brazilian soybean
crop to 112 million tonnes from 110 million tonnes. It lowered its
outlook for soybean production in Argentina to 54 million bushels from
56 million tonnes.
Soybean exports were left unchanged for Argentina, at 8.50 million
tonnes, despite the smaller harvest view. The Brazilian soybean export
outlook was raised by 2 million tonnes to 69 million tonnes.
Corn production in Brazil was seen at 95 million tonnes, unchanged from
January. The Argentine corn harvest view was lowered to 39 million
tonnes from 42 million tonnes.
Argentine corn exports were lowered by 1.5 million tonnes to 27.5
million tonnes. Brazilian corn exports were raised by 1 million tonnes
to 35 million tonnes.