November 11, 2020
US corn and soybean stockpiles drop to its lowest since 2013/14
The United States Department of Agriculture (USDA) said corn and soybean supplies in the US will drop to its lowest in seven years because of increased exports and decreased harvest estimations, Reuters reported.
Analysts said supplies could drop further as overseas purchases seek to hoard commodities and ensure food supplies because of supply chain disruptions related to COVID-19.
Don Roose, president of US Commodities, a brokerage said crops and ending stocks are getting smaller, putting big importance on South America harvesting a big crop.
Soybean futures on the Chicago Board of Trade reached its highest since July 5, 2016, while corn futures are at its highest since August 9, 2019.
In the USDA's monthly World Agricultural Supply and Demand Estimates report, 2020/21 US soybean ending stocks were pegged at 190 million bushels and corn ending stocks at 1.702 billion bushels. US soybean harvest was seen at 4.170 billion bushels while corn was at 14.507 billion bushels.
US corn's balance sheet was also affected by increased export demand from China and South Korea. The USDA increased its US corn exports outlook to 2.650 billion bushels, up 325 million bushels.
The report increased its China 2020/21 corn import projections to 13 million tonnes, compared to 7 million tonnes in its previous outlook.
A USDA attache report from Beijing in early-November projected China to import 22 million tonnes of corn thanks to higher livestock feed demand and tightened domestic supplies caused by storms and drought damage.
According to the average of estimates in a Reuters poll, analysts projected corn stocks of 2.033 billion bushels and a harvest of 14.659 billion bushels. Traders projected soybean stocks of 235 million bushels and a harvest of 4.251 billion bushels.