United States soybean output and exports trimmed on lower yields — WASDE

Lloyd Doyle
January 13, 2018

The U.S. Department of Agriculture, in one of its largest data releases of the year, was likely to forecast smaller U.S. soybean exports, larger Brazilian soybean production, and decreased U.S. winter wheat plantings.

The harvested area was largely unchanged at 89.5 million acres, the USDA said.

The massive corn and soybean harvests flooded country elevators and strained storage bins. USDA said that both corn and soybean stocks as of December 1 were the highest on record.

The increased corn production also caused USDA to boost its 2017/18 ending stocks view for the yellow grain. Exports were cut 65 million bushels to 2.160 billion bushels.

USDA pegged the corn harvest at 14.604 billion bushels, up from its previous forecast of 14.578 billion.

Analysts, on average, had expected the government to show total corn production of 14.579 billion bushels, according to a Reuters poll.

The big Brazilian crop was likely to dominate global export trade markets in the months to come, stealing away market share from US soy exporters. The increased production forecast is the result of increased yield projections, with the national average now projected at 176.6 bushels per acre. The average yield was cut to 49.1 bushels per acre from 49.5 bushels per acre.

Weekly U.S. soybean export sales of 607,400 tonnes and corn sales of 437,800 tonnes were both within analyst estimates.

Soybean stocks as of December 1 stood at 3.157 billion bushels, up from 2.899 billion a year ago.

Dec 1 quarterly stocks were reported at 12.516 vs. 12.386 past year. Global corn stocks are at 206.6 million, up 2.5 million from last month.

Trading ranges in each of the commodities were narrow in advance of the USDA crop data that also was likely to show smaller USA winter wheat plantings and a decline in US corn ending stocks.

Corn production in Kentucky is estimated at 217 million bushels, down one percent from the November forecast and down two percent from the previous crop.

CBOT March wheat eased to a session low of $4.28-1/4 per bushel in the wake of the export data before paring losses to $4.33-1/2, down 3/4 cent.

Other reports by Iphone Fresh

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