(Agriculture.com) – Though they came in below trade estimates, U.S. corn stocks continue to grow, according to the USDA Thursday.
At the close, the May corn futures settled 1 1/4 cents lower at $3.78 per bushel. The Dec corn futures finished 1 1/4 cents lower at $4.03 1/2 per bushel. May soybean futures closed 18 cents lower at $9.53 1/2. Nov. soybean futures finished 15 1/4 cents lower at $9.45 1/4. May wheat futures closed 7 1/2 cents lower at $5.18 3/4. In the outside markets, the NYMEX crude oil market is $0.49 higher per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 7 points higher.
In its April Supply/Demand Report, the USDA pegged the U.S. 2014/15 corn carryout at 1.827 billion bushels, vs. the average analysts’ estimate at 1.851 billion bushels and the USDA’s March estimate of 1.777 billion bushels.
For soybeans, the 2014/15 U.S. carryout is estimated at 370 million bushels, compared with the average analysts’ estimate of 371 million and the USDA’s March estimate of 385 million.
The USDA sees the U.S. 2014/15 wheat ending stocks at 684 million bushels, compared with 690 million bushels and the USDA’s March estimate of 691 million.
Matt Pierce, Futures International floor trader, says, “The world corn stocks are most bearish. Domestic beans ticks came in lower but on expectations.” “U.S. corn stocks are smaller than the average guess. But I still do not see this as bullish.” Yet other traders say the market is not having any violent reaction to the USDA data. “Soybeans are under some pressure, corn is unchanged, following the report,” Al Kluis, Kluis Commodities says. Jack Scoville, PRICE Futures Group vice president, says the USDA/WASDE Reports didn’t provide anything overwhelmingly bearish. “If anything, it looks like we got the estimates close to right. World corn stocks went up a lot, but that appears to be mostly accumulation all over the world and no single factor,” Scoville says. He adds, “The U.S. corn ending stocks are less than predicted, and the soybeans and wheat pretty close to predictions. I think they sold the market, and we might come back later in the day, I guess. I do not want to press it lower based on these numbers, maybe for weather or the export sales report or something, but not these numbers.”
World Carryout
The USDA sees the 2015-16 World corn carryout at 188.5 million metric tons, vs. the average analysts estimate of 187.1 mmt and the USDA March estimate of 185.3 mmt.
The World 2014-15 soybean carryout is pegged at 89.6 mmt, vs. the average analysts’ estimate of 89.5 mmt, and the USDA’s March estimate of 89.5 mmt, according to the World Agricultural Supply & Demand Estimate (WASDE) Report.
WASDE pegged the 2014-15 wheat carryout at 197.2 mmt, compared with the average analysts’ estimate of 197.4 mmt and the WASDE’s March estimate of 197.7 mmt.
