Not many changes for U.S. supply and demand outlook
The USDA made little to no changes to the domestic balance sheets for corn, soybeans, or wheat. Ahead of the report, most analysts were expecting minor changes, with minimal influence from demand expectations for China or impact from the coronavirus. 2019/20 U.S. corn ending stocks were unchanged at 1.892 billion bushels, with the USDA lowering the average price outlook $.05 to $3.80 per bushel, and soybean ending stocks were steady at 425 million bushels, with the USDA also lowering the price outlook for beans by $.05 to $8.70. No changes were made for wheat, with ending stocks seen at 940 million bushels with an average price of $4.55 per bushel. Wheat is now in the final quarter of the marketing year while corn and soybeans are just past the halfway point.
The USDA has raised its’ outlook for soybean production in South America. Brazil’s crop is seen at 126 million tons and Argentina is pegged at 54 million, both up 1 million tons on the month, but with no changes to exports or imports by China, leaving global ending stocks above a month ago. World corn ending stocks and production were both slightly higher than last month, with a bigger crop estimate for South Africa thanks to forecasts for more favorable weather, also increasing exports for South Africa and Ukraine. World wheat ending stocks were down less than a million tons on the month, with production slightly higher, and bigger export projections for Argentina and Russia against reductions for Australia and Canada.
The next set of supply and demand estimates is out April 9th.