USDA Monthly Supply and Demand Report a Mixed Bag for Grain Markets12 May 2014
US - Corn futures saw selling pressure in the wake of Friday's bearishly perceived USDA reports.
In its first projection of 2014-15 supply and demand, USDA estimated a U.S. corn carryover of 1.726 billion bushels, which was above trade estimates.
However, USDA surprised the trade putting the 2013-14 U.S. corn crop carryover at 1.146 billion bushels--lower than trade expectations.
On world corn supplies USDA put world carryover for the 2014-15 crop corn at 181.73 million metric tons (MMT)--well above trade expectations of 159.41 MMT.
Corn futures also saw selling pressure Friday on ideas USDA's crop progress reports Monday will show Midwest farmers made good gains in corn planting.
Soybean futures saw a neutral to slightly friendly report and were posting gains in the wake of the latest USDA data.
The U.S. government tightened its projection of old-crop soybean carryover to 130 million bushels, lower than trade expectations.
However, USDA raised its 2014-15 U.S. soybean crop carryover estimate more than anticipated, to 330 million bushels.
USDA also increased its Brazilian soybean crop estimate to 91 MMT--higher than expected. USDA estimated 2014-15 world soybean carryover at 82.23 MMT, higher than pre-report estimates.
Wheat futures got a mixed bag of data from USDA's reports Friday. The data was overall neutral to slightly bullish.
The government projected the U.S. winter wheat crop at 1.403 billion bushels-- lower than expected. USDA put the size of the all-wheat crop at 1.963 billion bushels, also down from the pre-report estimates.
The ag department reduced its old-crop U.S. wheat carryover estimate to 583 million bushels, also, down from the pre-report estimates. And it pegged its new-crop carryover estimate at 540 million
bushels--lower than expected.
However, USDA put the 2014-15 world wheat carryover at 187.42 MMT, higher than the pre-report estimate of 184.53 MMT.
Wheat futures were seeing some spillover selling pressure from the corn futures.
TheCattleSite News Desk
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