According to the latest USDA Supply and Demand report, U.S. soybean and wheat ending stocks are getting bigger, while the corn stocks tighten.
For soybeans, the USDA set the U.S. 2017-18 ending stocks more than the trade expected at 530 million bushels versus the average trade estimate of 496 million bushels, this compares to last year’s total of 302 million bushels. The report confirmed the trend of demand for wheat, soybeans and corn are beginning to draw down on supplies, but supplies remain enormous by historical standards. USDA lowered the Argentina soybean crop but raised the Brazil crop. Nearby prices at the crush plants ended the week mixed at down 20 cents to unchanged. Birdfood prices were down about 25 cents this week. Seed deliveries to processing plants have been heavy the past few weeks and this is leading to some weakness in nearby prices. 2018 new crop sunflower prices have remained firm in a range of $17 to $18.05. The USDA Risk Management Agency is in the discovery process in determining 2018 crop insurance price elections for sunflower. The current price election for oils is $17.60 with confection at $23.80. To follow the direction for sunflower price elections, watch the 2018 CBoT December soyoil contract during the month of February. Export news and South American weather will continue to be the main market movers.