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USDA Makes Few Changes in WASDE; Raises Brazil Bean Output to 114 Million Tons
The World Agricultural Supply and Demand Estimates (WASDE) report from the Department of Agriculture yielded few surprises with the government leaving corn stockpiles unchanged while raising forecasts for soybean inventories.
Corn stocks for 2016-2017 were pegged at 2.295 billion bushels, unchanged from last month’s projection but topping forecasts for 2.287 billion. New-crop inventories were estimated at 2.11 billion bushels, unchanged from the May report but up from analyst estimates for 2.085 billion bushels.
For soybeans, old-crop inventories were pegged at 450 million bushels, the USDA said, beating May’s projection of 435 million and analyst estimates for 433 million. New-crop carryout is forecast at 495 million bushels, topping projections for 485 million and the May outlook for 480 million bushels.
For wheat, carryout was seen by the USDA at 1.16 billion bushels, almost perfectly in line with analyst forecasts and last month’s 1.159 billion bushels. For 2017-2018, inventories are seen at 924 million bushels, topping forecasts for 911 million and last month’s projection of 914 million bushels.
“When you look at balance sheets compared to last month, there weren’t many changes,” said Larry Glenn, an analyst at Frontier Ag in Quinter, Kansas. “We expected those numbers. They tried to move it around, but it didn’t go very far. So within five minutes we’re back to trading weather.”
The biggest change was USDA’s projection for Brazil soybean production, raising its outlook to 114 million metric tons from just over 111 million tons last month. Argentina’s soybean output is now peggged at 57.8 million tons, up from 57 million tons last month.