USDA lowered U.S. ending stocks for both corn and soybeans in the December supply and demand report, but the price reaction was negative. Corn carryover came in at 1.998 billion bushels, down from last month. However, it was overridden by an increase in world ending stocks to 192.2 million metric tons. That’s according to market analyst Louise Gartner with Spectrum Commodities.
Soybean ending stocks were lowered by 40 million bushels from last month to 410 million bushels due to strong exports and world carryover was lowered slightly to just shy of 90 million metric tons. However, Gartner says a 3.5 million metric ton increase in the Brazil crop by CONAB was price negative to beans.
And Gartner says the strong demand for U.S. beans may not continue with the better prospects now for the South American crop.
Both U.S. and global ending stocks for wheat were raised to 654 million bushels and 195 million metric tons respectively. And Gartner says that didn’t come as much of a surprise.