“All of the numbers underscore the ample supplies of corn, wheat, and soybeans in the USA and around the world”.
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“Lower U.S. soybean meal exports are partly offset by increased domestic soybean meal use which is raised to reflect relatively strong October-December disappearance.” .
Wheat futures for March rose 2 1/2 cents, or 0.6%, to $4.60 3/4 a bushel at the Chicago Board of Trade. Corn imports are projected 10 million bushels higher based on recent imports of corn into southeastern US feed markets and corn exports are projected 50 million bushels lower as larger supplies of South American corn further increase competition for USA exports.
A 25 million bushel increase in projected corn use for ethanol in USDA’s February supply-demand report is partially offsetting a 50 million bushel lower export forecast.
USDA pegged global wheat ending stocks for the 2015/16 crop year at 238.87 million tonnes, up from its January forecast of 232.04 million tonnes.
In a separate report Tuesday, the USDA forecast American farmer net income will fall for a third straight year, to $54.8 billion, as persistent surpluses depress crop and livestock prices.
CBOT corn inched down 0.1 percent to $3.59-3/4, after rising on Thursday to end a six-session falling streak. Canadian exports were raised to 22 million tonnes, up 1.5 million from the USDA’s January view and above the forecast for USA exports.
“We have had back-to-back bumper crops, and there is strong export competition from Canada, so we are building hard red spring wheat stocks substantially”, Basting said. USA wheat ending stocks are raised 25 million bushels and are the largest since 2009/10. The watchdog said its deputy head, Yulia Shvabauskene, had told the United States about concerns related to the phytosanitary safety of corn and soybean imports. Soybean stocks as of August 31 are now estimated at 450 million bushels, up from 440 million previously.
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Traders have been on edge about the weather in Argentina because drought has already caused irrecoverable corn crop losses in some areas, according to an analyst at the country’s main grain exchange. Brazil corn production was increased 2.5 million metric tons from last month’s estimate to 84 million metric tons, higher than the average estimate of 81.51 million metric tons. It left its outlook for Brazil soybean production unchanged at 100 million tonnes compared to the average analyst forecast of 99.43 million.
