The United States Department of Agriculture lowered U.S. corn and wheat ending stocks and left the soybean stocks unchanged in its latest outlook.
Here are the highlights of the World Agricultural Supply and Demand Estimates (WASDE) report that was released on Feb. 9:
This month’s 2016/17 U.S. corn outlook is for increased food, seed and industrial (FSI) use and reduced stocks.
Corn for ethanol is raised 25 million bushels to 5.35 billion, based on the most recent data from the Grain Crushings and Co-Products Production report, and strong pace of weekly ethanol production during January as indicated by Energy Information Administration (EIA) data. Non-ethanol FSI is raised 10 million bushels.
Corn ending stocks are lowered 35 million bushels from last month.
The projected range for the season- average corn price received by producers is narrowed 10 cents on each end to $3.20 to $3.60 per bushel, with the midpoint unchanged at $3.40.
U.S. soybean supply and use projections for 2016/17 are unchanged this month, leaving ending stocks at 420 million bushels.
Soybean exports are projected at 2.05 billion bushels, up 114 million from last year. Although soybean export commitments through January are significantly higher than a year ago, competition from expected record South American exports will limit U.S. shipments to well below last year’s record levels this summer.
The U.S. season-average soybean price range for 2016/17 is projected at $9.10 to $9.90 per bushel, unchanged at the midpoint from last month.
U.S. 2016/17 wheat exports are raised 50 million bushels to 1.025 billion, reflecting a strong pace to date. Food use is lowered 3 million bushels to 960 million following the February 1 release of NASS’ Flour Milling Products report.
These changes resulted in a net 47-million-bushel reduction in ending stocks, now projected at 1.139 billion bushels, which would still be the largest since the late 1980’s.
The season-average farm price is raised $0.05 at the midpoint of the range to $3.85 per bushel on strengthening cash prices.
Global wheat supplies are lowered 4.2 million tons primarily due to sharp reductions in the India and Kazakhstan crops.