The grains were steady and mostly unchanged in the overnight with corn up 1/4 cent, soybeans up 1/2 a cent and wheat down 3/4 of a penny. The dollar is trading higher and crude oil is mostly unchanged this morning. Yesterday the April USDA supply and demand report was released which seemed to affect soybeans primarily.
Soybean ending stocks were revised lower by 15 million bushels to 370 MBU which was in line with analyst expectations. The decrease in ending stocks was a result of a 5 MBU increase in imports that was more than offset by a 6 MBU increase in seed use and a 14 MBU increase in residual use. Global ending stocks stayed mostly steady with world carryout at 89.55 million metric tons up only .02 from March’s report. Argentina production increased 1 MMT to 57 MMT while Brazil’s production was unchanged.
Wheat ending stocks were reduced by 7 million bushels to 684 MBU which was below analyst expectations of around 692 MBU. Wheat saw exports revised lower by 20 million bushels which was offset by a reduction in imports of 15 million bushels, an increase in seed use by 2 MBU and a 10 MBU increase in feed and residual.
Corn ending stocks were increased by 50 million bushels to 1,827 MBU which was below the average analyst guess of 1,854 MBU. This was a result of the decrease in feed and residual use which was revealed in the March 31st quarterly grain stocks report. However, despite the better than expected domestic stocks, global carryout was lifted 3 MBU to 188.46 million metric tons primarily from increased production out of major corn importers.
This morning Brazil’s Conab increased its forecast for the 14/15 soybean crop to 94.28 million metric tons from 93.26 in March. The corn forecast was also increased to 78.99 million metric tons compared to 78.21 million metric tons a month earlier.
