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USDA stocks report shows good corn, soybean demand

The USDA’s grain stocks report reflects solid demand for corn and soybeans. The as of September 1st supplies were above a year ago, but slightly less than what many analysts were expecting.

As of September 1st, 2016, old crop corn stocks were 1.738 billion bushels, up slightly on the year, with June to August usage of 2.97 billion bushels, compared to 2.72 billion during the same period in 2015. On farm stocks were 627 million bushels, 6% higher, and off farm stocks were 1.11 billion bushels, 2% lower.

Soybeans came out at 197.045 million bushels, up 3% on the year, with fourth quarter usage of 675 million bushels, up 55% from last year. On farm stocks were 41.6 million bushels, down 16%, and off farm supplies were 155 million bushels, up 10%. The USDA also lowered the 2015 soybean production number by 2.82 bushels, to 3.926 billion, citing lower harvested acreage, leaving the average yield at 48.0 bushels per acre.

All wheat stocks totaled 2.527 billion bushels, 21% above the previous year, with quarterly usage of 758 million bushels, 6% more than the same quarter last year. On farm stocks were 726 million bushels, 12% higher, and off farm stocks were 1.8 billion bushels, an increase of 24%.