Along with the Prospective Plantings report USDA released a new grain stocks report Thursday. USDA Chief Economist Joe Glauber says the numbers surprised some analysts and the markets. He says the report showed a tighter situation than a lot of people were expecting.
Corn stocks were down 15% from last year as of March 1 at just over 6.5 billion bushels, which Glauber says implies about a 3.6 billion bushel disappearance for the second quarter. He called it enormous usage, and in fact USDA says it's the largest quarterly use of corn ever.
Glauber says soybeans stored in all positions were down 2% from a year ago at 1.25 billion bushels.
"That's not the largest, but it's the second largest disappearance on record," Glauber said. "Which just again mirrors the strong demand we've had."
Wheat stocks were up 5% at 1.42 billion bushels, but use is outpacing last year by 20%. Glauber says the message of the report is simple - there's strong growth in demand despite high prices.