Strong overseas demand for U.S. corn and soybeans will mean smaller than expected stockpiles in coming months, the government said in a monthly update of crop output and usage worldwide. The Agriculture Department cut its estimate of corn ending stocks by nearly 9 pct, or 125 mln bu, from a month ago and cut soybeans by 7 pct, or 10 mln bu. Corn end stocks are forecast at an ample 1.331 bln bu, on the low side of trade expectations, and soybean end stocks are forecast for a thin 135 mln bu, slightly lower than analysts expected.
A story at Farm Futures said as a result of tight soybean supplies, “‘the basic assumption is that demand will be rationed, imports will soar, and farmers likely will harvest 2014 beans early,’ said Farm Futures Senior Market Analyst Bryce Knorr. ‘The first two of those assumptions mean higher prices, which is why we made new contract highs today. The third depends on good growing season weather.'”