May 2020 USDA Supply & Demand

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May USDA Reports Summary: 2020-21 has bigger corn and wheat stocks, fewer beans.

World corn carryout for fall of 2020 was increased by 11.6 million tons from the April report. The 2021 carryout was increased by another 25 million tons.

World bean carryout was left virtually unchanged this fall at 100.3 million tons and expected to slip to 98.4 million tons in 2021.

World wheat carryout was up 2.5 million tons from April and expected to grow by another 15 million tons by 2021.

The USDA increased the carryout for the U.S. 2019-20 crops. Corn carryout was up 6 million bushels as the USDA cut 100 million bushels out of ethanol production, increased exports 50 million bushels and increased feed usage by 25 million bushels.

U.S. 2019-20 soybeans gained 100 million bushels from the April estimate due to the same number of bushels cut from exports.

U.S. 2019-20 wheat carryout was up 8 million bushels, mostly due to a drop in exports.

Traders were expecting a bigger corn carryout and smaller soybean estimate. Wheat was in line with the pre-report trade estimates.

The U.S. 2020-21 corn crop, growing in the field right now, needs to see a surge in demand to prevent the carryover from exceeding 3.3 billion bushels, today’s forecast. The soybean carryout was forecast to be 405 million bushels, down from this fall’s carryout of 580 million.

U.S. wheat stocks are expected to shrink slightly from 978 million bushels down to 909 million.



Source: USDA, Reuters

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These data and comments are provided for information purposes only and are not intended to be used for specific trading strategies. This commentary is written as a daily marketing tool to help farmers sell the grain they raise. Although all information is believed to be reliable, we cannot guarantee its accuracy or completeness. Past performance and testimonials are not necessarily indicative of future results. Commodity trading involves the risk of loss, and you should fully understand those risks before trading.