WASHINGTON/CHICAGO, April 11 (Reuters) – The U.S. Department of Agriculture on Tuesday raised its outlook for global soybean, corn and wheat inventories above traders’ expectations, adding pressure to futures prices already struggling under the weight of massive supplies.
However there was not a severe reaction in Chicago futures prices. Corn and soybeans were down less than one percent and wheat was trading slightly higher.
The USDA, in a monthly report, pegged global soybean ending stocks at 87.41 million tonnes, up from 82.82 million in March. Analysts had expected an increase only to 83.91 million, according to a Reuters poll.
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Global corn stocks swelled to 222.98 million tonnes from 220.68 million, and global wheat stocks increased to 252.26 million tonnes from 249.94 million, the USDA said. Both topped analysts’ expectations.
“The numbers that jump out at you are these carryouts in the world,” said Don Roose, president of broker U.S. Commodities in Iowa. “It just tells you that South America’s big crops are getting bigger down there.”
World stockpiles of corn and wheat are at record highs. From Iowa to China, years of bumper crops and low prices have overwhelmed storage capacity for basic foodstuffs.
For Brazil, the USDA raised its estimate for the soybean harvest to 111 million tonnes from 108 million last month.
The agency estimated U.S. soybean ending stocks for the 2016-17 crop year at 445 million bushels, up from its previous outlook of 435 million bushels. The average of estimates in a Reuters poll of analysts had expected the report to show ending stocks of 447 million bu.
The outlook for soybean exports held steady at 2.025 billion bu., USDA said. In March, it had cut its soybean exports estimate by 25 million bu.
For corn, USDA said U.S. domestic ending stocks would be 2.320 billion bu., the same as its March outlook and compared with the average of analysts’ forecasts of 2.352 billion.
It said ending stocks of U.S. wheat would be 1.159 billion bu., up from the 1.129 billion bu. it forecast in March. Analysts had expected wheat ending stocks of 1.147 billion.
The following shows USDA and trade forecasts for global crop ending stocks in million tonnes.
| Global ending stocks | 2015-16 USDA | March 2016-17 USDA | April 2016-17 USDA | Trade f’cast |
| Corn | 221.83 | 220.68 | 222.98 | 221.81 |
| Soy | 77.13 | 82.82 | 87.41 | 83.91 |
| Wheat | 241.74 | 249.94 | 252.26 | 250.24 |
