Skip to main content

Anticipating June Corn and Soybean Stock Estimates


The USDA will release estimates of June 1 corn and soybean inventories on June 29. The level of those stocks will reveal the rate of consumption during the third quarter of the 2011-12 marketing year and the available supply for consumption during the fourth quarter.

According to University of Illinois agricultural economist Darrel Good, there is likely to be a wide range of expectations for the estimate.

"Based partially on the on-going record strong corn basis, we anticipate that feed and residual use of corn during the third quarter was larger than the estimate for last year's use. If so, June 1 stocks would be near 3.1 billion bushels and use for the year would be expected to exceed the current USDA projection of 4.55 billion
bushels.

"The June 1 stocks estimates take on a little more importance this year due to the relatively tight year-ending inventories projected for both corn and soybeans, even though more early-harvested corn is expected this year. The surprises in recent corn stocks estimates also add some drama to the upcoming report.

For corn, the estimate of June 1 stocks will reveal the level of feed and residual use during the previous quarter because weekly estimates of exports and domestic ethanol production provide on-going estimates of use in those categories. Based on
cumulative marketing year export inspections through May and Census Bureau export estimates through April, exports during the quarter were likely near 390 million bushels. Based on weekly and monthly estimates of ethanol production, total food and industrial uses of corn during the quarter may have been near 1.64 billion bushels.

For the entire 2011-12 marketing year, the USDA projects feed and residual use at 4.55 billion bushels, 243 million bushels less than use of a year ago.

"Implied use during the first half of the year was 247 million less than that of a year ago, with all of the decline occurring in the first quarter. If the USDA
forecast is correct, use during the last half of the current year should be about
equal to that of last year. Use during the final quarter of the year is expected to be relatively small due to the availability of more than the normal amount of new crop corn in August, and perhaps a little more summer wheat feeding than occurred last year."

So, what about third quarter use?

"On the surface, third quarter feed and residual use might be expected to be near that of last year. Total red meat and poultry production during the second quarter of the calendar year was about 1.5 percent less than during the same quarter last year, egg production was almost unchanged, and milk production was up about 6.5
percent. In addition, the production of distillers grains was about equal to
that of a year ago. However, implied use during the third (and fourth) quarter
last year was extremely small and there is less than complete confidence in the
accuracy of that estimate."

Good said that anticipating the June 1 stocks of soybeans is less difficult than for corn, but has been complicated by the discontinuation of the monthly Census Bureau estimate of the domestic crush. Quarterly crush estimates are now based on monthly estimates of crush by members of the National Oilseed Processors Association (NOPA). The USDA no longer reports domestic crush by quarter, but reports total domestic use that includes feed, seed, and residual use.

"Based on NOPA estimates for the March-May quarter, we estimate total domestic crush at about 425 million bushels, 7.3 percent more than crushed in the same
quarter last year."

Based on cumulative export inspections through May and Census Bureau estimates
through April, soybean exports during the third quarter of the year were near
257 million bushels. Consumption of soybeans for all purposes should have been near 722 million bushels, pointing to June 1 stocks near 650 million bushels.

Source: Darrel Good, 217-333-4716

Popular posts from this blog

Pork Exports Still Down

U.S. beef exports remained on a record-shattering value pace in October, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). October pork exports trended seasonally higher compared to recent months but were still below the results posted in October 2017. Lamb export volume in October more than doubled year-over-year, while value increased nearly 50 percent. October pork export volume was 207,725 mt, the largest since May but still 2 percent lower year-over-year, reflecting smaller variety meat exports. Export value ($536.5 million) was also the largest since May but still down 5 percent from a year ago. For January through October, pork exports were 1 percent above last year’s record pace at 2.02 million mt, while value was also up 1 percent to $5.33 billion. For pork muscle cuts only, January-October exports increased 5 percent from a year ago in volume (1.63 million mt), valued at $4.43 billion (up 2 percent). Source: U.S. Meat Export Fed
Read more

U.S. Beef Exports Climb, Pork Steady

U.S. beef exports set new records in August with export value topping $750 million for the first time, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). August pork exports were fairly steady with last year’s volume, but retaliatory duties in key markets continued to pressure pork export value. August beef exports totaled 119,850 metric tons (mt), up 7 percent from a year ago, valued at $751.7 million – up 11 percent year-over-year and easily exceeding the previous record of $722.1 million reached in May 2018. For January through August, beef exports totaled 899,300 mt, up 9 percent from a year ago, while value climbed 18 percent to $5.51 billion. August exports accounted for 13.2 percent of total beef production, up from 12.5 percent a year ago. For beef muscle cuts only, the percentage exported was 11.2 percent, up from 10.4 percent last year. For January through August, exports accounted for 13.5 percent of total beef production and 1
Read more

U.S. Pork, Beef Exports Surge in March

The pace of U.S. beef and pork exports increased sharply in March, driven by double-digit increases to leading markets Mexico, the China/Hong Kong region and South Korea, according to statistics released by the USDA and compiled by the U.S. Meat Export Federation (USMEF). U.S. pork exports reached their highest monthly total since October 2012: 209,704 metric tons (mt) valued at $606.7 million, increasing 29 percent in both volume and value over March 2013. Exports of U.S. beef rose 12 percent in volume to 93,380 mt valued at $516.2 million, an increase of 17 percent. When measured in proportion to overall U.S. beef and pork production, March exports also showed gains. Total pork exports (muscle cuts plus variety meat) equated to 31.5 percent of total U.S. pork production in March (26 percent of muscle cuts alone) versus 28 and 23.5 percent, respectively, a year ago. Beef exports accounted for 14 percent of total production and 11 percent of muscle cuts – up from 12 and 9 perce
Read more