The February World Agriculture Supply and Demand Estimate (WASDE) Report is generally benign, but market bulls that were expecting changes with the current robust demand for corn and soybeans were disappointed.
U.S. corn ending stocks were a bearish surprise coming in nearly 140 mb above trade estimates. The U.S. Department of Agriculture estimated stock at 1.502 billion bushels (bb), a 50 million bushels (mb) drop which came from the same revision upward in exports.
World corn ending stocks were actually raised 2.7 mmt to 286.5 mmt and South American production was left unchanged. Brazil corn production was pegged at 109 mmt, with Argentina at 47.5 mmt which is the same as January.
Domestic soybean ending stocks came in at 120 mb, which the agency lowered by 20 mb from last month. The change came directly from an increase in exports which are now projected at 2.25 billion bushels.
USDA left South American production unchanged, with Brazil at 133 mmt and Argentina at 48 mmt. World soybean carryover was lowered .9 mmt to 83.4 mmt and right in line with trade guesses.
U.S. stocks of all wheat were unchanged from last month at 836 mb. World wheat stocks were lowered by 9 mmt to 304.2 mmt and Basting says that came largely from increased demand in China and India.
