USDA report today increased ethanol usage this year by 100 mbu but also decreased exports by 50 mbu as carryout decreased from 1.764 to 1.719 billion bu. Corn followed through on overnight gains and reached 7.5 cents higher before buying cooled down and finished the day up 2.5 cents. Worldwide corn stocks were down slightly from 180.2 mmt to 179.3. The Argentina corn crop was increased 2 mmt and is pegged 4 mmt above last year. Brazil corn production is at 51.0 mmt which is unchanged from last year.
USDA soybean carryout decrease 35 mbu and went from 245 - 210. Increases in exports led the way to lower soybean carryout. If traders were only looking at this, then soybeans should have been up 30-50 cents but they ended down 5 cents. The bad part for soybeans today is the SA crop keeps getting bigger with Brazil up 1 mmt to 66.0 and Argentina holding in at 53 mmt. Combined that is 119 mmt of soybeans this year vs only 89 mmt last year. This means there are 30 mmt more soybeans available or 1.1 billion bushels!
Scott Meyer
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