USDA’s March 8 supply and demand report shows higher demand for the U.S. corn crop. The agency lowered the 2017-18 corn ending stocks to nearly 2.2 billion bushels, based on increased exports and ethanol production.
USDA raised its forecast of domestic soybean ending stocks to 555 million bushels based on the expectation of lower exports for the 2017-17 U.S. soybean crop. USDA economists expect higher soybean production and exports by Brazil.
USDA boosted its estimate of the Brazilian soybean crop to 113 million metric tonnes. Brazil’s corn crop came in slightly lower to 94.5 mmt.
The effects of drought are weighing heavily on the Argentina crop with USDA lowering the corn crop to 36 mmt, down from last month’s 39 mmt. The soybean estimate dropped to 47 mmt from last month’s 54 mmt.
Traders will now turn their attention to USDA's Prospective Plantings report set for a March 29th release.