The USDA forecast the carryover of all wheat on June 1, 2018, at 960 million bushels, up 25 million bushels from its November forecast at 935 million bushels. That change comes from a 25-million-bushel reduction in projected exports. All other 2017-18 wheat forecasts were unchanged, as were 2016-17 estimates with 2017 carryover at 1,181 million bushels.
“This reduction is primarily attributed to heightened Canadian competition expected from its increased exportable supplies,” the USDA said. “Canada and the United States compete in several of the same markets in Latin America and East Asia.”
Soybean carryover on Sept. 1, 2018, was forecast at 445 million bushels, up 20 million bushels from November based on a 5-million-bushel increase in seed use more than offset by a 25-million-bushel reduction in exports at 2,225 million bushels. All other 2017-18 forecasts and 2016-17 estimates were unchanged with 2017 carryover at 301 million bushels.
“Corn used to produce ethanol is raised 50 million bushels, based on increased sorghum export commitments, and the most recent data from the Grain Crushings and Co-products Production report, which estimated a lower-than-expected amount of sorghum used to produce ethanol during October,” the USDA said.
Wheat, corn and the soybean complex futures closed lower for the day.