News

USDA expecting good corn, soybean demand

The USDA’s projecting strong corn and soybean export demand during the upcoming marketing year following crop losses in Brazil.

The USDA raised its corn export estimate by 100 million bushels to 2.050 billion and increased soybeans by 20 million bushels to 1.920 billion. The USDA also increased its outlook for biodiesel demand, from 5.8 billion pounds to soybean oil to 5.950 billion, but cut its ethanol use estimate for corn, from 5.300 billion to 5.275 billion. For corn, 2015/16 ending stocks are now pegged at 1.701 billion bushels, compared to 1.708 billion in June, with 2016/17 at 2.081 billion bushels, compared to 2.008 billion a month ago. For soybeans, old crop ending stocks are seen at 350 million bushels, compared to 350 million last month, with new crop at 290 million bushels, compared to 260 million in June.

The 2016 corn production estimate for Brazil was lowered from 77.5 million tons to 70 million and soybeans were reduced from 97 million tons to 96.5 million. China is expected to import a total of 83 million tons of soybeans this marketing year and 87 million next marketing year.

The next marketing year for corn and soybeans starts September 1st. The next set of supply and demand numbers is out August 12th.