Analysts were expecting USDA to finally show reduced U.S. corn stocks in its April World Agricultural Supply and Demand Estimates (WASDE) report, out Friday morning, after stubbornly holding them steady a month ago. The agency noted a moderate downward shift today, pushing them down 150 million bushels to 1.352 billion bushels.
That news kept corn prices in the green, with gains of around 1% immediately following the report. Soybean stocks held steady at 120 million bushels, meantime, with wheat moving a bit higher to 852 million bushels. Both numbers were mostly in line with analyst expectations.
Corn takes center stage
Eye-popping export volumes over the past month did not go unnoticed by USDA. U.S. corn exports were raised 75 million bushels to 2.675 billion bushels – a new record high – in today’s report to reflect surging livestock demand from Southeast Asian countries, led primarily by China.
Not registered? Receive daily email alerts, subscriber notes & personalize your experience. Register Now Auction sales of China s old-crop wheat stocks continue to be large and domestic corn prices in China remain at a premium to wheat. This is expected to further increase China s 2020-21 wheat feed and residual use, the report said.
Wheat ending stocks in China are expected to decline for the first time in eight years in 2020-21, USDA said. It sees China s 2020-21 wheat ending stocks at 145.43 million mt, lower than the 150.43 million mt estimated previously.
Wheat import estimate into China for 2020-21, however, have been kept steady at 10.5 million mt, USDA said.