January 13, 2021

USDA: Corn and soybean supplies lower due to harvest cuts

The United States Department of Agriculture (USDA) said domestic corn and soybean supplies will be lower than projected due to a reduced estimate of last fall's harvest, Reuters reported.

Concerns over low supplies this year have pushed corn, soybean and wheat futures on the Chicago Board of Trade to multi-year highs in recent weeks, with prices for all three commodities reaching record highs not seen since 2014.

The USDA pegged the 2020/21 domestic soybean ending stocks at 140 million bushels. This is lower than the 175 million it forecast in December. The department pegged corn ending stocks at 1.552 billion bushels, lower than the December forecast of 1.702 billion.

For the 2020/21 marketing year, US soybean production was pegged at 4.135 billion bushels while corn production was pegged at 14.182 billion bushels.

The USDA also lowered its forecast for upcoming harvests from Brazil and Argentina, major global corn and soybean exporters.

Soybean production from Brazil was pegged at 133.00 million tonnes, no change from USDA's outlook. Corn harvest in Brazil was pegged at 109.00 million tonnes.

In Argentina, the USDA forecast soybean harvest at 48.00 million tonnes with corn at 47.50 million tonnes. Argentina is facing a drought, which is affecting its growing season.

- Reuters