U.S. Department of Agriculture officials today released the April World Agricultural Supply and Demand Estimates report. It contained “friendly” and “negative” components.
“U.S. totals were negative,” shares Jim McCormick, branch manager of AgMarket.Net.
“They put corn ending stocks at 2.092 billion (bushels). That was slightly over the average trade guess, which was 2.04 billion (bu). The bean number was a little negative. The trade was looking for a 430 million (bu) carryout, but the bean number jumped to 480 million (bu). We were looking for a 940 million (bu) carryout for U.S. wheat, which came in at 970 million (bu),” McCormick said.
World numbers seemed friendly, as U.S. Department of Agriuclture officials made revisions to production.
“The USDA cut back Argentina’s bean crop from 54 million tons to 52 (million tons) and cut the Brazilian (soybean) crop from 126 (million tons) to 124.5 (million tons). The world supply as a net dropped a little bit and that’s giving beans a little post-report support,” McCormick said.
McCormick appeared taken aback by factors influencing soybean carryout. USDA officials lowered soybean exports by 50 million bushels and offset this reduction by raising crush 20 million bushels.
“I think they’re going to have to raise the crush in the long run, which is a good/bad situation. As the ethanol industry starts to shut down, we’re not going to have distillers grains. End users that have been buying DDGs are going to have to find another source of protein, which is probably going to be meal. So the crush should increase, and I would expect for that number to increase in further reports,” McCormick said.
McCormick adds these adjustments will affect corn for energy usage.