World ending stocks continue to shrink
The global supply of grains and oilseeds is shrinking.
Kent Beadle with CHS Hedging says that jumped out to him when looking at USDA’s latest World Agricultural Supply and Demand Estimates.
“In every category, world corn, world coarse grains, world rice, world soybeans. The world balance sheets in all of those commodities tightened up to at least some degree.”
The soybean carryout is down 15 million bushels on the month even though USDA did not raise exports.
Beadle points out the 2.2 billion-bushel November projection was already quite large.
“But because of the fact that the Chinese have slowed down dramatically, as you would expect them to at this time of the year, (USDA) is choosing on this report, like they many times do in December, to leave well enough alone.”
Beadle suggests USDA is waiting to see how the South American crop progresses and will likely adjust export projections in next month’s report.