Wheat stocks up and corn stocks lowered

The United States Department of Agriculture (USDA) released its World Agricultural Supply and Demand Estimates (WASDE) report on Friday (October 9).

Global wheat stocks are raised in the report, while corn supplies are forecast lower. The report also estimated US wheat and corn production lower.

Wheat

The 2020/2021 global wheat outlook in the report is for larger supplies, increased consumption, greater exports and higher stocks.

Supplies are raised 2.2 million tons to 1,072.5 million, mostly on Russia’s production increasing 5.0 million tonnes to 83 million, which is the second-largest crop on record, following 2017/2018.

The report also outlined that Russia’s increased production more than offsets reductions in Ukraine, Canada, Argentina and the US.

World consumption is raised fractionally and global trade is also raised by 0.5 million tonnes to 189.9 million tonnes.

Coarse grains

US corn production was forecast lower in this month’s report. However, corn use for ethanol production, feed and residual use is also expected to decline according to the report, which added that there are smaller ending stocks.

US corn production was forecast at 14.722 billion bushels – down 178 million bushels due to a reduction in harvested area and a slight decline in yields to 178.4bu/ac.

Global coarse grain production was forecast lower in this month’s report to 1,458.8 million tonnes.

“The 2020/2021 foreign coarse grain outlook is for higher production, increased use and greater stocks relative to last month.”

Oilseeds

Foreign oilseed production for 2020/2021 was lowered by 2.6 million tonnes to 478.9 million, mainly on lower sunflowerseed production in Ukraine, the EU, Moldova and Argentina.

Reduced sunflowerseed production in Ukraine is expected to result in lower global sunflower meal and oil exports. This is expected to partly offset palm oil exports from Malaysia and rapeseed from Russia according to the USDA report.

US ending stocks of soybeans were projected to decline by 170 million bushels from last month to 290 million bushels. Global ending stocks were reduced by 4.9 million tonnes in the report to 88.7 million tonnes.