Few Changes Made to Balance Sheets in March WASDE

Corn disappearance was increased in the March USDA World Agricultural Supply and Demand Estimates (WASDE), leaving ending stocks 50 million bushels lower than last month’s estimates. Feed and residual use was revised up by 50 million bushels while corn used in ethanol production was revised down by 50 million bushels. Fewer planted acres this year has caused the USDA to lower food, seed, and industrial use by 50 million bushels as well. Corn exports were increased by 50 million bushels while imports and production remained unchanged. Global ending stocks for the 2014/15 crop were lowered by 4.36 million metric tons from last month, mostly due to both lower production and increased feed use. The report would be considered slightly bullish for corn.

The soybean balance sheet remained unchanged from February’s report. The lack of changes in the latest report surprised many, given the strong export numbers that soybeans have been putting up lately. Global soybean ending stocks are up by 0.27 million metric tons with a slight decrease in crush. Overall, the report could be slightly bearish since expectations heading into the report were that ending stocks would be lower.

The new crop 2014/15 remained relatively unchanged as well. U.S. wheat ending stocks were revised down by 1 million bushels as a result of increased seed use. Wheat production estimates remained unchanged this month, as did exports, food use, and feed and residual use. Global wheat stocks were revised down by 0.14 million metric tons with most areas of the balance sheet only seeing minor revisions. The report would be considered slightly bullish for wheat since many traders were expecting an increase in ending stocks.

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