WASHINGTON, D.C. (Reuters) — The U.S. Department of Agriculture raised its outlook for domestic corn supplies by less than expected April 11.
Its lowered projection for soybean ending stocks was in line with market forecasts.
The changes were modest in the big picture of supply and demand, and after the initial reactions, the trade appeared to view the report as confirmation of ample crop supply. Futures prices drifted lower in the following days.
The USDA pegged year-end corn stocks for 2014-15 at a nine year high of 1.827 billion bushels, 50 million bu. more than in its March report, but it was less than the 1.854 billion that the trade expected.
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The bump came from a cut to use in the feed and residual category, which market watchers had expected.
The USDA had cut its corn ending stocks projection in the five previous monthly crop reports.
The department put global year end corn stocks at 188.46 million tonnes, which was more than the trade’s expected 186.91 million.
The USDA lowered domestic 2014-15 soybean ending stocks to 370 million bu. from 385 million in March.
The forecast matched the average trade forecast. Stocks will be well up over 2013-14’s 90 million bu.
It slightly increased its forecast for 2014-15 year end global soybean stocks to 89.55 million tonnes, up from 89.53 million last month. Global stocks were 66.32 million tonnes last year.
The USDA pegged domestic wheat ending stocks at 684 million bu., down from 691 million bu. in the March report and below market expectations of 692 million bu.
It lowered world wheat ending stocks to 197.21 million tonnes, below expectations.
The news should have supported wheat prices, but the weakness in corn following the report also dragged wheat down.
The USDA increased its forecast for Argentina’s soybean crop to 57 million tonnes from 56 million. It did not change its outlook of 94.5 million tonnes for Brazil.
The robust harvest of both crops from the major South American producers has weighed on corn and soybean futures as export demand has shifted to that region and away from the United States in recent months.
