April USDA report raises corn stocks; soybean stocks unchanged

10 April 2013 23:26  [Source: ICIS news]

HOUSTON (ICIS)--The US Department of Agriculture (USDA) release of the April World Agricultural Supply and Demand Estimates (WASDE) on Wednesday saw the federal agency raising the level of domestic corn ending stocks by 125m bushels, while leaving soybean ending stocks unchanged.

Citing a 150m bushel decrease in feed and residual use, as well as 25m bushels less in exports, the USDA report put the corn ending stocks at 757m bushels while the March report had estimated that number being 632m. The change thereby boosted stocks-to-use ratio to 6.8% compared with 5.6% from the prior month.

This was in contrast to pre-report estimates by traders and crop analysts who had guessed the number would be in the area of about 824m bushels.

Another contrast from month to month was that the average price per bushel is calculated at $6.65-7.15/bushel, down from March pricing of $6.75-7.45/bushel.

The latest news helped future corn pricing to continue to climb back up as the May contract closed up 4.75 cents to $6.49/bushel.

Global stocks for the vital commodity also were given an uptick as the USDA now expects 125.29m tonnes compared with a figure of 117.48m tonnes in the March release.

Pre-report estimates had expected those stocks to be around 120.2m. The production number was higher by 1.85m tonnes, with increases from Brazil and Europe.

The USDA is counting primarily on Brazil to increase the global supply as it is forecasted that the South American country will produce 74m tonnes of corn, which would result from a larger harvest than originally expected. The other larger producer is Argentina, but the WASDE left its number at the previous range of 26.5m tonnes.

In terms of the other important cash crop, the USDA left soybeans unchanged from March at 125m bushels, but that also was below the pre-report projections of 137m bushels.

Driving the change was that the federal agency increased crush and export numbers will reducing residual use for soybeans. Unchanged as well was the price estimate, as it remains set between $13.80-14.80/bushel.

The report did not help soybean pricing in the futures market on Wednesday as May contracts closed down by 2.75 cents to $13.92/bushel.

Global numbers climbed higher as ending soybean stocks are now pegged at 62.63m short tons (57m tonnes) compared with 60.21m last month with initial pre-report numbers putting the crop total at 60.1m tons.

Production levels were boosted by approximately 1.6m tons with exports down 1.2m tons.

The USDA next WASDE report will be released on 10 May.

By: Mark Milam
+1 713 525 2653

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