USDA pegs U.S. soybean ending stocks above 300 million bushels
The USDA is projecting new crop U.S. soybean ending stocks above 300 million bushels.
Speaking to Brownfield ahead of Tuesday’s supply and demand report, Global Commodity Analytics and Consulting president Mike Zuzolo said he was concerned that might happen.
“That’s a big chunk, and you’ve got to wonder whether USDA will then take the world soybean ending stocks over 100 million metric tons, and does that psychologically break the market? And as a result if it does, will corn follow?”
In a release following USDA’s October supply and demand estimates, he said soybeans saw a huge increase in world ending stocks, and to a lesser extent so did corn.
“And I think the funds will continue to spread the long corn and short bean mindset because of the fertilizer issue in the backend like the ’22 crop. But I’m not sure they would want to do that in the nearby.”
Zuzolo sees South American weather becoming more bullish, saying he believes USDA is still too high on Brazil and Argentina’s corn and soybean production estimates.