WASHINGTON, Dec 12 (Reuters) – The forecast for U.S. year end stocks of wheat and soybeans were raised due to dwindling export demand for U.S. supplies in the monthly supply and demand report from the USDA.
The government also trimmed its supply view for corn due to rising usage from the ethanol sector.
There was little reaction from the crop futures market.
Today’s report from the U.S. Department of Agriculture pegged soybean 2017-18 ending stocks at 445 million bushels, up 20 million from its November outlook and above the average of the trade’s expectation of 438 million bu. The USDA lowered its export forecast for the oilseed by 25 million bu. and raised seed usage by five million bu. .
U.S. soy exporters have seen a slow start to the marketing year, with the pace of shipments lagging well behind what is needed to meet the USDA’s bullish projections. Plentiful supplies from South American producers Argentina and Brazil have provided overseas buyers with alternatives to U.S. soybeans.
For wheat, U.S. ending stocks for 2017-18 were seen at 960 million bu., up from the 935 million bu. forecast in the government’s November report. The trade on average had expected 938 million bu.
A surplus of Canadian supplies following a bigger-than-expected harvest in that key competitor has cut into demand for U.S. exports.
USDA lowered its 2017-18 domestic wheat export outlook by 25 million bu. to 975 million bu. It raised its estimate of the Canadian wheat crop by three million tonnes to 30 million.
Domestic corn ending stocks for 2017-18 were cut to 2.437 billion bu. from 2.487 billion bu.
Analysts had been expecting corn ending stocks of 2.478 billion bu.
USDA raised its forecast for corn used for ethanol in the marketing year to 5.525 billion bu. from 5.475 billion bu.
USDA cited increased sorghum exports as the reason for more corn being used for ethanol.