In the overnight session the grains traded higher with March corn up 1 cent, January soybeans up 3 ½ cents and March Chicago wheat up 2 ½ cents. Grains closed lower yesterday in reaction to the WASDE report, with March corn pushing through November 17th lows.
The Supply and Demand report released by the USDA yesterday showed a revision lower in 17-18 corn ending stocks by 50 million bushels to 2.437 billion bushels as a result of stronger ethanol production in the first few months of the marketing year. The average trade guess expected 2.478 billion bushels of corn carryout. Global ending stocks increased slightly to 204.08 million metric tons, up from 203.86 MMT in November.
Soybean ending stocks were revised higher by 20 million bushels to 445 million bushels after exports were reduced by 25 million bushels and seed use was increased by 5 million bushels. Exports were reduced as a result of stronger than expected competition from Argentina and Brazil in the first quarter of the marketing season. Global ending stocks increased to 98.32 million metric tons, up from 97.90 MMT in November.
US wheat ending stocks was revised higher by 25 million bushels on account of exports being reduced. Wheat ending stocks were estimated at 960 million bushels which was above the average trade expectations of 938 million bushels going into the report. Global wheat ending stocks also creeped higher to 268.42 million metric tons, up from 267.53 in the November report.
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