Usage of corn and soybeans was strong in the USDA July Supply and Demand Report, but the remaining supplies are still larger than the trade expected.
Steve Gregory with Allendale said, “With corn, there was a surprise and that caused markets to react.”
Gregory said the new crop corn production for 2018 was raised 190 million bushels.
“Yields are still sitting the same and (there?s) very little movement on anything else.”
Corn fell 15 ? cents, for December, to a closing price of $3.98 ? in Chicago.
Soybeans added a more positive tone to the report, but the market was also lower.
“New Crop Soybean Carryout came in at 460 million, with the trade expectation at 490 million,” Gregory said. “There were tighter stocks on old crop and new crop than what the trade was looking for, but we saw residual selling or profit-taking that caused the market to go down in sympathy with corn and wheat.?
November soybeans were down 9 ? cents to $10.34
John Baize from John Baize and Associates gave this summary of USDA’s foreign and domestic soybean numbers.
USA
2016/17
The volume of soybeans crushed domestically was reduced by 10 million bushels to 1.9 billion bushels.
Soybean exports were increased by 50 million bushels to 2.1 billion bushels.
Total use of U.S. soybeans was increased by 40 million bushels to 4.118 billion bushels.
U.S. ending stocks of soybeans were reduced by 40 million bushels to 410 million bushels.
U.S. soymeal exports were reduced by 90,000 MT because of slow pace of exports thus far and lower crush volume.
U.S. soymeal consumption was reduced from 30.07 MMT to 29.98 MMT.
U.S. soyoil exports were increased from 1.04 MMT to 1.05 MMT.
U.S. soyoil consumption was reduced from 9.03 MMT to 8.89 MMT because of a 200 million pound reduction in its use for biodiesel and a 100 million pound reduction in its use for food.
Total U.S. soy exports now are forecasted at 69.04 MMT, 58.9 percent of U.S. production in 2016.
The average farm price for soybeans for 2016/17 was reduced by 5 cents per bushel to $9.50/bushel.
The average price of soymeal was increased from $315 to $320 per short ton.
2017/18
U.S. soybean production was increased by 5 million bushels based on higher harvested area.
Ending stocks were reduced by 35 million bushels because of combination of lower beginning stocks and higher production.
U.S. soyoil imports were increased by 10,000 MT to 150,000 MT.
The mid-point average farm price forecast for U.S. soybeans was increased by 10 cents per bushel to $9.40/bushel.
The mid-point average U.S. soymeal price was increased by $5/short ton to $320/short ton.
There were no other changes.
Foreign
2016/17
China?s imports of soybeans were increased by 2 MMT to 91 MMT.
China?s soymeal exports were reduced by 150,000 MT to 1.4 MMT.
Brazil?s soybean exports were reduced by 900,000 MT to 61.5 MMT.
Brazil?s soymeal exports were reduced by 250,000 MT to 14.8 MMT.
Argentina?s soybean exports were reduced by 500,000 MT to 8.0 MMT.
Paraguay?s exports of soybeans were increased by 300,000 MT t 6.6 MMT.
Canada?s soybean exports were increased by 200,000 MT to 4.6 MMT.
EU soybean imports were reduced by 600,000 MT to 14 MMT.
EU soymeal imports were reduced by 500,000 MT to 19 MMT.
Egypt?s soybean imports were reduced by 200,000 MT, but its soymeal imports were increased by 200,000 MT to 1.4 MMT.
Iran?s soymeal imports were increased by 225,000 MT to 1.7 MMT on greater demand for poultry feed.
Malaysia?s soymeal imports were reduced by 100,000 MT to 1.5 MMT.
Pakistan?s imports of soybeans were increased by 100,000 MT to 1.5 MMT, but its imports of soymeal were reduced by 200,000 MT to 500,000 MT.
Turkey?s soybean imports were increased by 200,000 MT to 2.3 MMT.
The Ukraine?s exports of soybeans were increased by 100,000MT to 3.0 MMT.
2017/18
Brazil?s exports of soybeans were increased by 500,000 MT to 64 MMT, but its exports of soymeal were reduced by 250,000 MT to 15.3 MMT.
China?s imports of soybeans were increased by 1 MMT to 94 MMT because of higher soymeal usage.
Egypt?s imports of soybeans were reduced by 200,000 MT to 2.8 MMT, but its soymeal exports were increased by 150,000 MT to 1.3 MMT.
EU soybean imports were reduced by 200,000 MT to 14.8 MMT.
Iran?s soymeal imports were increased by 250,000 MT to 1.9 MMT.
Pakistan?s soybean imports were increased by 100,000 MT to 1.7 MMT.
The Ukraine?s soybean exports were increased by 100,000 Mt to 2.9 MMT.
