WASHINGTON, DC – USDA released their Quarterly Grain Stocks Report on Tuesday and caught some traders flat-footed with a 22 percent drawdown in domestic soybean supplies, falling to 1.39 billion bushels.
The reductions in both on-farm and off-farm stocks appear to be due, in part, to increasing purchases by China over the past three months.
For corn, USDA projects a 1 percent decrease to 5.22 billion bushels despite a 3 percent increase for on-farm storage in 2020. Old crop wheat stocks slipped 3 percent from 2019 to just over 1 billion bushels, as farmers stored 12 percent more on-farm while off-farm storage decreased 7 percent.
Good demand over the past year has helped sorghum growers reduce storage by 38 percent, thanks again to huge Chinese demand since the signing of the Phase One trade deal.
(SOURCE: National Agricultural Statistics Service)