USDA Seen Tightening Soybean Stocks
The U.S. Department of Agriculture will probably lower its outlook for U.S. soybean and corn stockpiles in a report due out at noon on Wednesday, according to analysts surveyed by The Wall Street Journal.
The USDA is expected to show that the U.S. will have 139.3 million bushels of soybeans and 1.403 billion bushels of corn in storage at the end of the marketing year on Aug. 31, according to the analysts. That is less than last month's USDA outlook for 145 million bushels of soybeans and 1.456 billion bushels of corn.
About 821 million bushels of corn were on hand in the 12 months that ended on Aug. 31, 2013, while soybean stockpiles totaled 141 million, USDA data show.
Strong demand that has been led by China has cut into soybean stockpiles. Since the marketing year that started on Sept. 1, exporters have shipped 40.5 million metric tons of soybeans to overseas buyers, according to the USDA. The government has projected total shipments at 41.6 million tons for the 12 months that end on Aug. 31.
Corn exports have also been unusually robust, according to the USDA. Shipments since the start of the marketing year on Sept. 1 have totaled 22.8 million tons, more than double the same timeframe last year, government data show.
Analysts pegged U.S. wheat inventories at 580.8 million bushels, up from last month's forecast for 558 million bushels, in the marketing year that ends on May 31. Stockpiles on that date last year totaled 718 million bushels, according to the government.
Global corn stockpiles will probably be pegged at 157.9 million metric tons by the USDA, down from the 158.5 million projected last month, according to the analysts. Soybean inventories globally will likely total 70.3 million tons at the end of the marketing year, down slightly from last month's USDA outlook, the survey said. Wheat inventories worldwide will probably be forecast by the government at 183.7 million tons, on par with last month's projection, according to the analysts.
The USDA's Brazil soybean production estimate may drop to 87.4 million tons from last month's 88.5 million tons, and the country's corn output is pegged at 69.8 million tons, little changed from March.
Growers in Argentina will likely produce 24.1 million tons of corn and 54.1 million tons of soybeans, little changed from the USDA's March estimates, the analysts said.
Write to Tony C. Dreibus at firstname.lastname@example.org
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(END) Dow Jones Newswires
April 07, 2014 15:55 ET (19:55 GMT)