The August USDA Supply and Demand report confirmed record crops of corn and soybeans, but in the case of corn the numbers weren’t as bearish as expected. USDA pegged corn production at 14.03 billion bushels, with a 167.4 bushel per acre yield and that put ending stocks at 1.8 billion. Although that was lower than the trade guess Don Roose with U.S. Commodities says the trade believes USDA was conservative and will raise yield in future reports.
The report was more bearish for beans with a record production estimate of 3.8 billion bushels and a 45.4 bpa yield. That raised ending stocks to 430 million bushels and Roose says that is a bearish number.
Wheat production was also raised to 2.03 billion bushels with a slight increase in ending stocks to 663 million bushels. However, the bearish number was the global stocks which were raised nearly 3.5 million metric tons to around 193 million metric tons.
