USDA lowers U.S. corn ending stocks for the 2016-17 crop

WASHINGTON (DTN) -- Due to ethanol, feed and industrial demand, USDA lowered U.S. corn ending stocks for the 2016-17 crop by 35 million bushels in this month's World Agricultural Supply and Demand Estimates released Thursday.USDA analysts, however, did not make any changes to estimated soybean ending stocks for the crop, citing expected summer competition from South America as the reason for holding the line on U.S. soybean exports later this year.Domestic wheat ending stocks were also lowered to 1.139 billion bushels, which was below the range of pre-report estimates.USDA's U.S. ending stocks were bullish for corn, neutral for soybeans and bullish for wheat, said DTN Analyst Todd Hultman. Thursday's new global ending stocks estimates from USDA are moderately bullish for corn, soybeans, and wheat, said Hultman.USDA's reduced its estimate of U.S. corn ending stocks for 2016-17 from 2.355 to 2.320 billion bushels, which was less than expected. Thursday's U.S. estimates are bullish for corn, said Hultman.USDA's estimate of U.S. soybean ending stocks for 2016-17 stayed at 420 million bushels, slightly more than expected. Thursday's U.S. estimates are neutral for soybeans, Hultman said.USDA's estimate of U.S. ending wheat stocks for 2016-17 was reduced from 1.186 to 1.139 billion bushels, which was less than expected. Thursday's U.S. estimates are bullish for wheat, according to Hultman.WORLD ENDING STOCKSUSDA's estimate of global ending corn stocks for 2016-17 was reduced from 220.98 to 217.56 mmt, less than expected.USDA's world ending soybean stocks estimate for 2016-17 was reduced from 82.32 to 80.38 mmt, less than expected.USDA's estimate of world ending wheat stocks for 2016-17 was reduced from 253.29 to 248.61 mmt, also less than expected.For USDA's full Crop Production report, visit: https://www.nass.usda.gov/…For World Agricultural Supply and Demand Estimates (WASDE), visit: http://www.usda.gov/…For DTN's exclusive audio comments on today's reports, visit: http://listen.aghost.net/…CORN ENDING STOCKSCorn ending stocks for the 2016-17 crop were lowered 35 million bushels to 2.32 billion bushels. That came in slightly below the average pre-report trader estimate. Corn use for ethanol was bumped up 25 million bushels, to 5.35 billion bushels, based on recent data from the grain crushings report. Food, seed and industrial use for corn was also bumped up 10 million bushels.The stocks-to-use ratio for the 2016-17 crop is projected at 16.1%, still significantly higher than the 12.7% ratio for the 2015-16 crop.The range of season average price for corn was narrowed 10 cents on each end to a midpoint average of $3.40 a bushel.Global ending stocks for the 2016-17 corn crop were lowered 3.42 million metric tons, to 217.56 million metric tons. Ending stocks were lowered due to reductions in both China and the European Union, partially offset by increases for Mexico and Paraguay.SOYBEANSUSDA did not make any changes in the supply and demand for the domestic 2016-17 soybean crop this month. Ending stocks were left at the January estimate of 420 million bushels.Expected record exports from South America later this year was the reason cited for USDA making no changes to U.S. soybean export numbers. The South American competition "will limit U.S. shipments to well below last year's record levels this summer," USDA stated.USDA did bump up the mid-point farm-gate price for soybeans by 5 cents to $9.45 a bushel.Surprisingly, USDA did not make any changes to Brazil's soybean production estimate, leaving it at 104 million metric tons. USDA did lower Argentina's soybean production by 1.5 million metric tons to 55.5 million metric tons due to heavy rains affecting Argentina.WHEATUSDA raised 2016-17 wheat exports 50 million bushels to 1.025 billion bushels, reflecting stronger demand for U.S. wheat globally. That lowered projected ending stocks to 1.139 billion bushels, down 47 million bushels from last month's expectations. Still, the stocks remain the largest since the 1980s.The wheat changes came in lower than the pre-market report estimate ranges and were a small surprise for traders.Global wheat ending stocks for the 2016-17 crop were also lowered 4.7 million metric tons. Total use was raised .5 million metric tons with higher feed and residual use. Vietnam feed and residual use was raised 1.3 million metric tons and China feed and residual use was raised 1 million metric ton.The farm-gate price for wheat was raised 5 cents at the midpoint to $3.85 per bushel.