USDA released its monthly World Ag Supply & Demand Estimates on March 11 and lowered its corn and soybeans forecasts.
Corn stocks were reduced by 3%, largely driven by higher forecast ethanol use, partially offset by reduced exports, according to UBS analyst Henry Kirn. Soybean ending stocks are now projected 12% lower than previous estimates (following a 7% reduction last month) at 185 million bushels, down 10% year-over year. The agency also raised its wheat ending stocks forecast by 9% to 712 million bushels, up 133% year-over-year.
USDA increased the midpoints of its corn price forecast to $4.10/bushel, from $3.90/bushel, and soybean price forecast to $9.35/bushel, from $9.25/bushel. It left the midpoint of its wheat price forecast unchanged at $6.80/bushel.