USDA sees higher corn stocks and reduced soy

Posted by Marina

Maize stocks in the United States are expected to grow sharply at the end of the 2020/21 season, while soybeans are expected to fall, the US Department of Agriculture (USDA) said on Friday, after forecasting larger US harvests this year.

The projection for the corn crop showed an increase of 12.9% compared to last season, to 15.460 billion bushels, based on an average yield of 178.5 bushels per acre, according to the USDA.

"The outlook for corn in the US in 2020/21 is for record production and domestic use, increased exports and larger stocks," said the department, also noting that the forecast for total cereal supply is a record.

The agency said the harvest increase is projected as more farmers plant more corn compared to 2019, when extreme weather and widespread floods prevented farmers from planting millions of acres.

Use for animal and residual feed was projected at 5.8 billion bushels, an increase of 275 million bushels as of 2019/20.

The USDA predicts that the amount of corn destined for ethanol will be 5.575 billion bushels.

Final stocks for the 2020/21 harvest were set at 2.637 billion bushels, an increase of 39.4% over the previous marketing year.

Corn exports are expected to rise to 2.1 billion bushels, compared to 1.725 billion, reflecting expected growth in global business, but with continued competition from other exporters, such as Brazil, Argentina and Ukraine.

For soybeans, the USDA estimated the crop at 4.195 billion bushels, 17.9% higher than the previous marketing year, with plantations recovering from last year's weather-related drop.

Final stocks would fall to 320 million bushels, 105 million bushels below the previous year, amid expectations of an increase in exports.

As for wheat, the estimate is that the harvest will be 1.836 billion bushels, compared to 1.920 billion in 2019/20. The USDA also predicts that final inventories will reach 777 million bushels, against 940 million in 2019/20.

Source: Agrolink