2024-07-15 11:46:00 ET
Summary
- A surprise for the market was the larger-than-expected revisions seen in 2023/24 US ending stocks for corn and soybeans, which also meant lower 2024/25 ending stocks.
- The USDA revised higher its 2024/25 US corn production estimates by 240m bushels to 15.1bn bushels due to expectations for higher acreage.
- The USDA revised lower its 2024/25 US soybean production estimate by 15m bushels to 4.44bn bushels due to lower acreage.
USDA raises corn output but lowers stock estimates
The USDA revised higher its 2024/25 US corn production estimates by 240m bushels to 15.1bn bushels due to expectations for higher acreage. Harvested area estimates were increased by 1.3m acres to 83.4m acres, while yield estimates were left unchanged at 181bu/acres. Despite the increase in output numbers, the USDA still lowered its ending stock estimates for 2024/25 to 2.097b bushels, below the roughly 2.29b bushels the market was expecting. Lower ending stocks were driven by expectations of stronger demand, but more importantly due to lower estimates for 2023/24 ending stocks. While US corn balance numbers indicate a relatively tighter-than-expected market, the fact that stocks are still projected to exceed 2bn bushels suggests a comfortably supplied market....
Read the full article on Seeking Alpha
For further details see:
WASDE Update: Better Supply Prospects For Wheat And Corn