By Mark Weinraub
WASHINGTON, Dec 10 (Reuters) – Strong demand for U.S corn and soybeans will cut into the abundant domestic supply stockpile by more than expected, according to government data released on Wednesday.
The U.S. Agriculture Department projected that ending stocks of corn for the 2014-15 crop year will come in at 1.998 billion bushels, down from its last forecast of 2.008 billion bushels. The change was due to a 10-million bushel bump in corn use for sweeteners.
Record export demand keyed the 8.9 percent cut to soy supplies. USDA pegged 2014-15 U.S. ending stocks of soybeans at 410 million bushels, down 40 million bushels from its previous estimate. Exports were raised to 1.760 billion bushels from 1.720 billion.
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Analysts had been expecting U.S. soybean ending stocks of 427 million bushels and U.S. corn ending stocks of 2.027 billion bushels, according to the average of analysts’ estimates in a Reuters poll.
Corn and soybean prices have rallied throughout the fall despite the record harvests of both crops due to strong demand as well as slow farmer sales that have also kept cash markets firm.
For wheat, USDA raised its domestic stocks outlook to 654 million bushels from 644 million, matching market forecasts. USDA cited rising durum imports from Canada and increased production for the change.
USDA also issued surprise increases to its global corn and wheat outlook due to bigger-than-expected production in places like Canada, China and the EU.
World wheat ending stocks were pegged at 194.90 million tonnes, up two million from its November outlook and topping forecasts for 191.75 million tonnes.
The government raised its global corn ending stocks view to 192.20 million tonnes from 191.50 million, Analysts, on average, were expecting global corn ending stocks of 191.42 million tonnes.
For soybeans, USDA lowered its global ending stocks projection to 89.87 million tonnes compared to expectations of 89.70 million tonnes.
