The USDA released their Supply and Demand estimates today. November ’19 soybean futures traded lower immediately after the report, but have now started to trade higher on the day. December ’19 corn futures traded lower as well and are still holding slightly lower.
The U.S. feed-grain outlook for 2019/20 is for larger production and domestic use, lower exports, and greater ending stocks. With total U.S. corn supply rising more than use, 2019/20 U.S. ending stocks are up 390 million bushels from last year and if realized would be the highest since 1987/88. The global coarse grain outlook for 2019/20 is for record production and use, and lower ending stocks. World corn production is forecast record high, with the largest increases for the United States, South Africa, Russia, Canada, India, and Brazil.
The 2019/20 outlook for U.S. soybeans is for higher supplies, crush, exports, and slightly lower ending stocks compared to 2018/19. Global soybean beginning stocks for 2019/20 are forecast to increase 14.1 million tons compared to 2018/19, leading to higher supply despite lower production.