USDA calling for smaller ending corn stocks in April WASDE

HOUSTON (ICIS)–The US Department of Agriculture (USDA) is calling for smaller ending corn stocks, while for soybeans it is forecasting higher ending supply, according to the April World Agricultural Supply and Demand Estimates (WASDE) report.

For the corn outlook the monthly update is projecting not only the lower amount of ending stocks but also greater usage of the crop for ethanol and feed and residual use.

Corn used for ethanol is being raised by 25 million bushels to stand at 5.4 billion bushels based on data through February from the Grain Crushings and Co-Products Production report and weekly ethanol production data as reported by the Energy Information Administration (EIA).

Feed and residual use is also being increased by 25 million bushels to 5.7 billion bushels based on indicated disappearance during the December-February quarter.

With no supply changes and use rising, the WASDE said ending stocks are now projected lowered by 50 million bushels to 2.1 billion bushels.

The USDA said season-average farm price received by producers is now down by 5 cents to $4.70 per bushel.

For soybeans, the outlook for supply and use not only expects higher ending stocks but also lower imports, residual use and exports.

The monthly update said the soybean trade is being reduced on the pace seen to date and expectations for future shipments.

With the trade changes and slightly lower residual, soybean ending stocks are raised by 25 million bushels to 340 million bushels.

The agency said the season-average soybean price is now forecasted lower by 10 cents to $12.55 per bushel.

The next WASDE report will be released on 10 May.