March 11, 2013

 

USDA keeps national corn and soy supplies at tight levels

 

 

The USDA has kept US corn and soy supplies at tight levels while increasing global soy and wheat stockpiles from a month ago, according to its monthly US and world grain report.

 

The Argentine soy and corn crops were both lowered by drought, USDA said.

 

Projected soy output was trimmed by 3%, to 51.5 million tonnes, and the corn crop by 2%, to 26.5 million tonnes. Analysts had expected slightly deeper cuts.

 

US soy end stocks were forecast for 125 million bushels, the smallest in nine years and a thin two-week supply when the new crop is ready for harvest but unchanged on the month.

 

Corn ending stocks were also forecast steady on the month at 632 million bushels, the smallest in 17 years and a bare three-week supply.

 

USDA cut its estimate of corn exports by 75 million bushels but said larger production of beef and poultry will increase demand for corn for feed.

 

Brazil was forecast to reap a record 83.5 million tonnes of soy. USDA stood by its forecast, although Brazil's forecasting agency lowered its estimate to 82.1 million tonnes this week.

 

USDA raised its forecast of world wheat ending stocks by 1%, or 1.5 million tonnes, due to larger stockpiles in India.

 

US and Iran's global ending stocks for soybeans would be up slightly, to 60.21 million tonnes, while corn dipped by half a million tonnes, to 117.48 million tonnes, USDA said.

 

USDA will estimate spring plantings of US corn, soy, wheat and nearly two dozen other crops on March 28.

 

USDA has projected record corn and soy crops if weather and yields are normal, bouncing back from the severe 2012 drought.

 

On March 28, USDA will report on the size of US corn, soy and wheat stockpiles as of March 1.