Updated: See March 2015 USDA crop report data.
Larger global stocks of corn and wheat in Tuesday's USDA crop report appeared to overshadow the reductions in U.S. corn and soybean ending stocks and weigh on Chicago crop futures.
World corn ending stocks went to 189.64 million metric tons from 189.15 million, while soybeans were trimmed to 89.3 million from 90.78 million.
U.S. wheat ending stocks were increased by 5 million bushels to 692 million as exports were lowered in the USDA crop report.
Global ending stocks for wheat went to a larger-than-expected 197.85 million metric tons, as production was raised by 1.65 million tons due in part to increases in Argentina, Europe, Kazakhstan and Ukraine.
"The world numbers were bearish for corn and wheat, which is what the market appears to be reacting to," said Bryce Knorr, Farm Futures senior grain market analyst.
In the U.S., corn ending stocks were trimmed by 50 million bushels. Feed usage was cut 25 million bushels to 5.25 billion bushels, but was more than offset by a 75-million-bushel increase in use for ethanol. Exports were unchanged at 1.75 billion.
"I'm surprised USDA cut its estimate of corn feed usage, considering the cattle inventory was more than expected and hog weights are running heavy," Knorr said of the crop report. "Granted, most of the increased cattle herd won't be fed 2014 crop corn, but some will."
Higher crush and export forecasts of 1.795 billion and 1.79 billion, respectively, lowered U.S. soybean ending stocks to 385 million from January's 410 million.
Production of 2014 U.S. corn, soybeans and wheat were unchanged from the January USDA crop report at 14.216 billion, 3.97 billion and 2.026 billion, respectively.
South American Results
USDA trimmed Brazil's soybean crop to 94.5 million metric tons from 95.5 million. Talk has circulated here and in Brazil of production being hampered by dry conditions in western Parana and in some northern regions.
Argentina's soybeans were raised to 56 million metric tons from 55 million. USDA's attache for Argentina last week estimated the crop at 57 million, but that forecast may have come too late to be included in Tuesday's report, which is based on information as of February 1.
USDA left unchanged its forecast for China's soybean imports at 74 million metric tons, but raised its production to 12.35 million from 11.8 million.
At Tuesday's close, Chicago March corn futures were off 3 cents at $3.88-1/4 per bushel, March soybeans were down 9-1/4 at $9.69-1/4 and March soft red winter wheat was down 8-3/4 at $5.21.
Find the full USDA crop report on the USDA website.
February 10 USDA crop report data: