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Soybean stocks drop 35%

 

Any other year, a quarterly soybean stocks figure below 100 million bushels would have been bullish for futures.

However, that also came with an increase in last year’s production number, not to mention this year’s expected record crop. Either way, U.S. Commodities President Don Roose calls the number “a little bit of a head-scratcher”, adding, “What the government really did was raise last year’s crop up 69.2 million bushels, and that was expected, out of the residual. At the other side of it, what they really are implying, is that the export or the crush, probably the export pace, is stronger than we thought. What it all boils down to is our disappearance was larger than the trade thought and we’re just thankful that we had an increase in last year’s production, otherwise we’d have been at bare bones.”

USDA’s scheduled to release updated supply, demand, and production numbers October 10.

Old crop corn stocks in all positions on September 1, 2014 came out at 1.24 billion bushels, up 50% from September 1, 2013. The June to August indicated disappearance was 2.62 billion bushels, compared to 1.95 billion during the same period last year. On farm stocks were 462 million bushels, a 68% increase, and off farm supplies were 774 million bushels, 42% more than a year ago.

Old crop soybean stocks were reported at 92.0 million bushels, down 35% on the year. For the fourth quarter of the previous marketing year, indicated disappearance was 313 million bushels, 6% more than during June to August 2013. On farm stocks were pegged at 21.3 million bushels, a 46% decrease, and off farm stocks were 70.6 million bushels, 30% less than last year.

Wheat in all positions came out at 1.91 billion bushels, up 2% from this time last year. The June to August indicated disappearance was 711 million bushels, 2% less than the same period a year ago. On farm stocks were 722 million bushels, a 30% rise, and off farm stocks were 1.19 billion bushels, a 9% decline.