USDA reports strong Q4 corn, soybean demand
The USDA says corn, soybean, and wheat demand was better than expected last quarter.
On September 1st, old crop corn stocks were 1.995 billion bushels, 10% less than a year ago, when most analysts were expecting a slight increase. On farm stocks of 750.8 million bushels were down 8% and off farm stocks were 1.244 billion bushels declined by 12%. The indicated disappearance for the fourth quarter of the 2019/20 marketing year was 3.02 billion bushels, compared to 2.98 billion during June through August of the 2018/19 marketing year.
Soybeans were reported at 523.478 million bushels, a year to year drop of 42%, a bigger than anticipated cut even with a lower than indicated rate of disappearance. On farm soybean stocks were 141.2 million bushels, a decrease of 47%, and off farm supplies were 382.278 million bushels, 41% lower. The indicated quarterly disappearance of 858 million bushels was 2% below the year before.
Wheat stocks were 2.159 billion bushels, down 8% on the year. On farm supplies were 705.05 million bushels and off farm stocks were 1.454 billion bushels, declines of 4% and 10%, respectively. The indicated disappearance for the first quarter of the 2020/21 marketing year was 695 million bushels, a year to year improvement of 4%.
The USDA also revised the 2019 corn and soybean crop production totals, raising corn by 2.67 million bushels and lowering beans by 333,000 bushels. The new 2019 total for corn for grain is 13.620 billion bushels, with an average yield of 167.5 bushels per acre, planted area of 89.745 million acres and harvested area of 81.337 million acres. Corn for silage was increased by 715,000 tons, putting the total at 133.522 million, with an average yield of 20.2 tons per acre and harvested area of 6.615 million acres. The 2019 soybean crop totaled 3.552 billion bushels, with an average yield of 47.4 bushels per acre, planted area of 76.1 million acres and harvested area of 74.939 million acres.
The USDA’s next set of supply and demand estimates is out October 9th.