The December USDA Supply and Demand report typically produces few changes and little in the way of market reaction. Today’s report is no exception. While corn and soybean prices closed higher on Friday, the gain had little to do with the USDA numbers. U.S. ending stocks numbers came in close to trade expectations with very little change from the previous report. Global stocks grew slightly from the previous report.
Corn ending stocks were pegged at 2.40 billion bushels, just shy of the average of trade guesses of 2.43. Soybean carryover was put at 480 million bushels, higher than the market expectation of 469mb. U.S. wheat ending stocks were pegged at 1.143 billion bushels, 4 million bushels above market expectations.
The export outlook for both corn and soybeans was left unchanged despite the recent fast pace of shipments, as strong competition from South American countries was expected in 2017. “In recent years, early-season U.S. corn export commitments have not been a robust indicator of final exports,” USDA said in a statement.
USDA said world ending stocks of corn would be 222.25 million tonnes, up from its November outlook of 218.19 million tonnes. Analysts, on average, had been expecting world corn ending stocks at 219.24 million tonnes.
The government bumped its estimates of Brazil corn production to 86.50 million tonnes from 83.50 million tonnes.