U.S. corn and soybean supplies ahead of the fall harvest totaled 1.738 billion bushels for corn and 197 million for soybeans, USDA said on Friday.
Those numbers were up slightly from a year ago but down a little from average trade forecasts. Wheat supplies jumped 21% to 2.527 billion bushels from last year’s nearly 2.1 billion
“Today’s numbers for corn and soybeans were in line with my expectations, but the wheat stocks estimate is bearish, suggesting less wheat was fed than expected over the summer, despite cheap prices and abundant supplies, especially of lower protein hard red winter on the Plains,” said Bryce Knorr, Farm Futures senior grain market analyst.
Also on Friday, USDA lowered 2016 wheat production at 2.31 billion bushels. That is down from its August estimate. The change was due to decreases in soft red winter and spring wheat production, which more than offset the increases in hard red winter and white winter wheat.
“The government lowered its forecast of soft red winter and other spring wheat production, which is why those (Chicago futures) contracts are trying to turn higher as the session wears on,” said Knorr.
In Chicago, corn futures turned higher after the report with the December and March contracts both up about 8 cents for the day. Soybeans were about 7 cents higher near midday.
Soft red winter wheat futures turned higher after the report, while hard red winter trimmed losses. December soft red winter was about 2 cents higher near midday and December hard red winter about 2 cents lower. December spring wheat was about 7 cents higher.
“With the reports out of the way the market can focus on harvest weather, which is far from ideal and likely lowering yields for both corn and soybeans,” said Knorr.
The yield reductions will not be known until possibly USDA’s last monthly production estimates in January, he said.