The U.S. Department of Agriculture has recently announced the U.S. 2018 carryover forecast for wheat and corn futures. The said commodities are now expected to go higher as the World Agricultural Supply and Demand Estimates report states. However, the carryover forecasts for the US Soybean futures came lower while having unchanged estimates from a month earlier.
As estimated, The carryover for wheat will 1.064 billion bushels for June 1, 2018. This is a 30 million bushels increase or 3%, from 1.034 billion bushels posted for March. However, this was a decrease of 117 million bushels, or 10% in a year over year basis.
According to USDA, the carryover estimates came entirely from the decrease in feed and residual use of wheat.
Additionally, The 2018 wheat carryover could have an average trade expectation of 1.040 billion bushels. However, it may also remain within the range of analysts’ estimates.
As for the forecast of U.S. corn carryover, the data could go as high as 2.182 billion bushels which is 55 million bushels up for on Sept. 1, 2018. This is also a 2.6%, from March’s data but a decrease 111 million bushels, or 5%, in a year over year basis.
The carryover forecast rooted from the lower feed and residual use and slightly lower food, seed and industrial use.
Furthermore, the carryover of soybeans came lower due to the lower seed and residual use offset. the USDA added that the soybean meal’s high prices have been supported crush margins.
The carryover for U.S Soybean futures could have 550 million bushels. This is a 5 million bushels down from 555 million bushels.
US Corn Exports
In other news, the amount of US corn inspected for export has recently surged 34% on weekly basis. According to the US Department of Agriculture data, It soared to 1.937 million mt during the week that ended Thursday. In a year-over-year basis, the amount of corn inspected edged 59.7% higher from the 1.213 million mt.
Also, it was corn that was considered to be the largest share of the US’ grain exports last week. It had 64.8% gains in total. More so, Wheat shares came in second as the largest trades. This consisted of 14.4% of US grains inspected for export during the period.
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