Tuesday morning update
The USDA on Tuesday cut its estimates of South American soybean production more than expected, sending oilseed prices higher.
Corn and wheat initially rode oilseeds’ coatails higher but later in the morning turned lower, pressured by the USDA’s bearish estimate of U.S. corn ending stocks.
May canola at about 11 am CST was trading at $627.50 per tonne, up $4.40. November was trading at $589.70, up $6.40.
USDA today lowered its estimate of Brazil’s soybean crop to 66 million tonnes, from 68.5 million in its last monthly update. Last year it grew 75.5 million tonnes.
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USDA pegged Argentina’s crop at 45 million tonnes, down from 46.50 million in the last forecast. Last year it grew 49 million tonnes.
USDA’s forecast of year end U.S. corn stocks was 11 percent larger than expected. It left the number unchanged from last month at 801 million bushels. That is the still the smallest amount in 16 years but traders had expected a smaller number, given the small March 1 stocks number released just over a week ago.
USDA said feeders would substitute plentiful wheat for tight corn and also there will likely be an early harvest this year providing new crop corn supplies in the final weeks of 2011-12.
USDA pegged U.S. year end wheat stocks at 793 million bushels, down from 825 million in its March estimate. That was about what traders expected.
World ending stocks of wheat were projected at 206.27 million tonnes, below trade estimates for 208.621 million tonnes. In March, USDA pegged world wheat ending stocks at 209.580 million tonnes.
