USDA’s March Supply and Demand Report focused largely on South American production, but there were a few domestic surprises. Soybean ending stocks were raised to 555 million bushels, with a drop in exports which was bearish. Doug Werling with Bower Trading says that number doesn’t seem plausible with the recent export business to China.
However, he says USDA was fairly aggressive in lowering Argentina’s soybean production by 7 mmt to 47 mmt and came in with Brazil at only 113 mmt.
U.S. corn ending stocks were also friendly as USDA lowered that number to 2.217 billion bushel with a big hike of 175 million bushels in corn exports.
Argentina corn production was lowered by 3 mmt and Brazil by 1 mmt. U.S. wheat ending stocks were slightly higher at 1.034 billion bushel and world carryout was up 2.8 mmt from February.
