USDA releases bearish WASDE data
Corn feed usage offsets a projected bump in ethanol use, yielding a U.S. corn ending stocks number unchanged from a month ago, according to Friday's USDA World Supply/Demand (WASDE) Report.
Friday's report shows total 2010/2011 corn ending stocks are 675 million bushels, a number, a number sharply higher than most market analysts expected, and one that will be bearish for Friday's trade.
"U.S. corn feed and residual use is lowered 50 million bushels as increased prospects for 2011 SRW wheat production and higher year-to-year corn plantings in the South reduce expected corn feed and residual disappearance during the second half of the 2010/11 corn marketing year," according to the WASDE report.
"Yawner. Corn and bean carryout left unchanged. Corn exports left unchanged was a surprise, after 8 weeks of surprisingly large weekly sales. Ethanol usage went up," one market analyst told Agriculture.com Chicago Markets Bureau Chief Mike McGinnis Friday morning. "No surprise they moved bean exports a little lower, as China is doing more south American business now. Wheat ending stocks moved lower was against pre-report trade estimates, but large ending stocks make it a non-issue. Time to take profits."
Also in Friday's report, USDA pegged soybean ending stocks at 140 million bushels, also unchanged from the March estimate. Wheat stocks were pegged slightly lower than a month ago -- at 839 million bushels compared to 843 million in the March report.