The monthly report of March 2017 released by the United States Department of Agriculture (World Agricultural Supply and Demand Estimates Report – WASDE) shows the estimates of an increasing global production both for Corn (1049.24 Mio t, +0.9% from February outlook) and Soybean (340.79 Mio t, +1.2%).
Corn production is projected higher in Argentina (+2.7%), South Africa, India and especially in Brazil (+5.8%), on increases to both area and yield due to the rapid planting progress of second crop Corn in the CenterWest. Brazil production is raised also for Soybean (+3.8%), mainly on increase in crop which has benefited from favorable weather with ample rainfall throughout the growing season, raising the prospects for record yields (108 Mio t).
U.S. Soybean exports are reduced to 55.11 Mio t (-1.2% from February outlook), therefore ending stocks are projected higher at 11.84 Mio t, up 3.6% from last month. U.S. Corn outlook is for increased Corn used to produce ethanol and reduced feed and residual use. Corn used to produce ethanol is raised (+0.9% from last month) with the strong pace of weekly ethanol production during February.
Higher Soybean shipments for Brazil and Paraguay offset lower U.S. exports. Parallel to higher exports is a 1 Mio t increase to Chinese Soybean imports reaching a record 87 Mio t. Corn exports are projected higher for Brazil, Argentina, and South Africa while imports are raised for Iran.
Global ending stocks are raised both for Corn (+1.4%) and for Soybean (+2.5 Mio t for Brazil, China, and the United States combined).