October 1, 2020
US stockpiles for soybean and corn fall as exports increase
The United States Department of Agriculture (USDA) said soybean and corn stockpiles were smaller than estimated as the US increased its exports of the commodities to China in the summer, Reuters reported.
The USDA said soybean supplies are down 858 million bushels while corn supplies fell 3.024 billion bushels during the three months ended September 1.
The stocks report for September is usually questioned as traders await details from the monthly supply and demand report.
Brian Basting, economist for Illinois-based broker Advance Trading said the September report is usually unclear, with this year's report affected by the increased grain exports.
The USDA report triggered a rally in the futures market. Corn futures on the Chicago Board of Trade was 4.6% up, its higher since March 6 while soybeans increased 3.7%.
The USDA said soybean stocks were at 523 million bushels as of September 1 while corn stocks were 1.995 billion bushels. Wheat stocks were at 2.159 billion bushels.
Analysts' estimations in a Reuters poll were 576 million bushels in soybean stock while corn stocks were estimated at 2.250 billion bushels. Wheat stocks were estimated at 2.240 billion bushels.
The USDA also revised its 2019 corn crop estimate to 13.620 billion bushels, higher than the 13.617 billion bushels in its previous estimation.