Corn supplies rising faster than use [Corn and Soybean – n°11/2016]

The U.S. Department of Agriculture, in the WASDE report of November 2016, shows for the season 2016-17 the estimates of an increasing global production both for Corn (1030.53 Mio t) and Soybean (336.09 Mio t).

The forecasts reflect higher expected Corn crops in the U.S., Ukraine and Russia, based on the increase in yield, and higher expected Soybean crops in the U.S., Russia and Mexico.

U.S. Corn used for ethanol is projected +0.63 Mio t higher from last month, while non-ethanol FSI (food, seed and industrial) is raised +1.52 Mio t. With supply rising faster than use, Corn ending stocks are raised at 13.08 Mio t.

Despite increased supply, U.S. Soybean crush is reduced -0.54 Mio t mostly due to reduced Soybean meal export prospects. Sales are lagging year-earlier levels to several markets including Mexico, Canada, Thailand and the EU. Domestic Soybean meal consumption is reduced slightly.

Corn forward curve (CME Futures)

Soybean forward curve (CME Futures)