USDA Report Shows Drawdown for Corn, Soybean Supplies
Good export numbers and strong demand worldwide were cited for old crop corn ending stocks falling 80 million bushels to 2.102 bbu and new crop down 105 mbu to 1.577 bbu. Old crop beans drew 25 mbu to 0.505 bbu and new crop ending stocks came in under expectations at 0.385, down 30 mbu from the May WASDE estimate. Old crop wheat had a build of 10 mbu to 1.080 bbu but new crop drew down 49 mbu to 0.946 bbu. Currently, corn, soybean, and wheat ending stocks are projected to fall by 25%, 23%, and 12% respectively.
Export Sales Announcements
Private exporters reported to the U.S. Department of Agriculture export sales of 177,000 metric tons of soybeans for delivery to unknown destinations. Of the total 5,000 metric tons is for delivery during the 2017/2018 marketing year and 172,000 metric tons is for delivery during the 2018/2019 marketing year.
EPA Head Pruitt Teases E15 During Midwest Tour
Pruitt told Midwestern farmers and politicians that the EPA has the authority to grant summertime E15 waivers. E15 sales during the summer is currently banned by the EPA due to concerns of potentially increased smog during peak driving season. Just last week, the White House scrapped plans to revise the Renewable Fuel Standard that would serve to aid oil refiners.
South American Corn Estimates In Line With Expectations, Brazilian Beans Surprise
Argentine corn production estimates remained unchanged from the May WASDE at 33 MMT and soybeans were reduced by 2 to 37 MMT, in-line with trader expectations. The Brazilian corn estimate was slashed by 2 MMT to 85 MMT but soybeans were increased by 2 MMT to 119 MMT which was on the high end of the analysts’ range.
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