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USDA raises outlook for global soy, grain suppliesUSDA raises outlook for global soy, grain supplies
The U.S. Agriculture Department on Tuesday raised its outlook for global soybean, corn and wheat inventories above traders' expectations, adding pressure to futures prices already struggling under the weight of massive supplies.
The USDA, in a monthly report, pegged global soybean ending stocks at 87.41 million tonnes, up from 82.82 million in March. Analysts had expected an increase only to 83.91 million, according to a Reuters poll.
Global corn stocks swelled to 222.98 million tonnes from 220.68 million, and global wheat stocks increased to 252.26 million tonnes from 249.94 million, the USDA said. Both topped analysts' expectations.
Futures prices for nearby soybean, corn and wheat futures fell to session lows at the Chicago Board of Trade after the USDA data reinforced the presence of a supply glut.
"The numbers that jump out at you are these carryouts in the world," said Don Roose, president of broker U.S. Commodities in Iowa. "It just tells you that South America's big crops are getting bigger down there."
World stockpiles of corn and wheat are at record highs. From Iowa to China, years of bumper crops and low prices have overwhelmed storage capacity for basic foodstuffs.
In Brazil, the USDA raised its estimate for the soybean harvest to 111 million tonnes from 108 million.
The agency estimated U.S. soybean ending stocks for the 2016/17 crop year at 445 million bushels, up from its previous outlook of 435 million bushels. The average of estimates in a Reuters poll of analysts had expected the report to show ending stocks of 447 million bushels.
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The outlook for soybean exports held steady at 2.025 billion bushels, USDA said. In March, it had cut its soybean exports estimate by 25 million bushels.
For corn, USDA said U.S. ending stocks would be 2.320 billion bushels, the same as its March outlook and compared with the average of analysts' forecasts of 2.352 billion.
It said ending stocks of U.S. wheat would be 1.159 billion bushels, up from the 1.129 billion bushels it forecast in March. Analysts had expected wheat ending stocks of 1.147 billion.
(Reporting by Tim Ahmann in Washington and Tom Polansek in Chicago; Editing by Andrea Ricci and Matthew Lewis