Chad Hart, ISU Extension Grain Marketing Economist, provides a summary of the latest USDA report.
With the mid-March USDA supply and demand report, the corn picture is a little brighter today. Feed demand was increased to 5.3 billion bushels as the expansion in the livestock sector continues. Corn demand via ethanol was lowered 50 million bushels, but still stands at 5.2 billion bushels. Processing efficiency at ethanol plants has improved and USDA incorporated that efficiency change in this update. So the feed and ethanol changes offset each other. But with corn exports also shifted up 50 million bushels, the overall demand structure for corn continues to grow. With total use now estimated at just under 13.7 billion bushels, corn demand is at record levels. And while ending stocks are projected to increase from last year, the growth in stocks is not as large as once feared. Given the improving demand, USDA increased the midpoint of its season-average price range 5 cents, to $3.70 per bushel.
For soybeans, this was a very quiet report on the domestic front. There were no changes to the U.S. soybean balance sheet. Domestic crush demand is projected at 1.795 billion bushels. Soybean exports are set at 1.79 billion bushels. Ending stocks are estimated at 385 million bushels, up from 92 million the year before. And the midpoint of the season-average price range is set at $10.20 per bushel. Globally, soybean production is at record levels as well. But global soybean trade is growing to work through the large supplies.
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