USDA’s July Supply and Demand Report shocked the market with a big increase in new crop ending stocks to 580 million bushel, which was 195 million bushel above June. It came as the result of USDA lowering exports by 250 million bushel and they factored in the impact of the recent 25-percent Chinese tariff on U.S. soybeans. The agency left yield unchanged at 48.5 bushels per acre, but with higher acreage increase production slightly to 4.31 billion bushel.
New crop corn ending stocks were bullish, coming in at 1.55 billion bushel. This was below last month’s 1.577 billion bushel and well below the trade guess. Yield was unchanged at 174 bpa, but with higher acreage USDA raised the corn production number to 14.2 bb.
U.S. wheat ending stocks were raised to 985 million bushel which was up from last month due to an increase in all wheat production by 39 million bushel to 1.881 bb. However, the most bullish number for wheat was the new crop world carryout, which was lowered by 5.1 mmt.
