Quarterly grain and oilseed stocks are lower than expected

USDA releasing their quarterly stocks on September 1 for corn at 2.11 billion bushels and soybeans at 911 million bushels, both coming in lower than the average pre-report estimate by traders.

CORN

Old-crop corn came in on Sept. 1 at 2.11 billion bushels (bb), down 1% from last year's 2.14 bb.

With the end of the 2018-19 marketing year, that 2.11 bb carries over as the beginning stocks for the 2019-20 marketing years.

The report also shows more usage than expected because the average trader stockpile for Sept. 1 was 2.436 bb.

On-farm storage for corn was projected at 753 million bushels (mb), a 22% increase from last year's on-farm holdings on Sept. 1. Off-farm stocks were projected at 1.36 bb, down 10% from last year's total.

The June-August usage was 3.09 bb, down slightly from 3.16 bb for the same period in 2018.

SOYBEANS

USDA said soybean stocks as of Sept. 1 totaled 913 mb. That's up 108% from last year, but below the range of pre-report expectations. Traders had expected USDA's estimate to fall within 940 mb and 1.001 bb.

On-farm stocks totaled 265 mb, up 162% from last year, while stocks in off-farm locations totaled 648 mb.

Usage during the June to August time frame totaled 870 mb, up 11% from the same period a year ago.

USDA revised 2018 production down by 116 mb from its previous estimate, with planted area declining to 89.2 million acres (ma)and harvested acreage dropping to 87.6 ma. The national average yield estimate was revised down 1 bushel per acre (bpa) to 50.6 bpa.

WHEAT

All wheat stocks as of Sept. 1 totaled 2.38 billion bushels, down slightly from last year. USDA said 776 mb were stored on-farm, while 1.61 bb were stored in off-farm locations. Those numbers are up 23% and down 8% respectively.

The June to August disappearance totaled 657 mb, up 11% from the prior year.


Sponsored Content

Sponsored Content