October 12, 2020
US corn and soybean supplies less than previously projected
The United States Department of Agriculture (USDA) said domestic corn and soybean supplies will be smaller than estimated due to adverse weather reducing the farmers' harvest acreage, Reuters reported.
According to the USDA's monthly World Agricultural Supply and Demand Estimates Report, soybean stocks were pegged at its lowest in five years, as increased exports have lowered the country's stockpile.
The USDA said a derecho windstorm affected Iowa and flattened corn in major growing areas, resulting in reduced harvest potential.
Craig Turner, from Daniels Trading, said soybean supplies will be much tighter, making the South American crop more important.
Soybean futures on the Chicago Board of Trade was up to their highest in more than two and a half years after the report was released. Corn reached its highest in a year.
The USDA lowered projections of US corn production from 14.900 billion bushels to 14.722 billion, while soybean was lowered from 4.313 billion bushels to 4.268 billion.
However, even with smaller harvests overalls, crop yields remain pegged at record highs for corn and soybean. Corn yield are projected to average 178.4 bushels per acre, with corn at 51.9 bushels per acre.
USDA lowered its projection for corn ending stocks by 336 million bushels to 2.167 billion bushels, with soybean increased to 290 million bushels, up 170 million. The department also reduced its corn usage projections because of lower demand from the feed and residual category as well as the ethanol industry.