(Updates with analyst quote, prices, details)
By Mark Weinraub
WASHINGTON May 10 U.S. soybean ending stocks
were seen rising to an 11-year high in the 2017/18 crop year
following another bumper harvest, the U.S. Agriculture
Department said on Wednesday.
Corn stocks were seen declining slightly but remaining
plentiful. Wheat stocks were seen falling due to production
dropping to its lowest level in 11 years.
The new-crop stock outlooks, the first issued for the
2017/18 marketing year, all came in below market expectations.
"USDA obviously is saying the demand profile is going to be
strong again (for soybeans), said Jim Gerlach, president of A/C
Trading in Fowler, Indiana. "Despite record crops in the U.S.
and record crops in South America and record plantings in the
U.S., we're not really growing surplus."
Soybean futures jumped to their highest levels since
March 24 before quickly retreating to pre-report levels but
remaining in positive territory. Corn futures firmed
slightly while wheat turned higher.
USDA pegged 2017/18 soybean ending stocks at 480 million
bushels. It also trimmed its soybean stocks outlook for the
2016/17 crop year by 10 million bushels to 435 million bushels.
If realized, 2017/18 soy stocks would be the biggest since
2006/07 and the third-biggest ever.
U.S. soybean production was seen falling to 4.255 billion
bushels in 2017/18 from 4.307 billion in 2016/17. Both exports
and domestic usage were seen rising in the upcoming marketing
For corn, 2017/18 ending stocks were pegged at 2.110 billion
bushels. The 2016/17 ending stocks projection was lowered to
2.295 billion bushels from 2.320 billion bushels.
Wheat ending stocks for 2017/18 were seen at 914 million
bushels, down from 1.159 billion bushels in 2016/17.
Analysts had been expecting new-crop corn stocks of 2.122
billion bushels and new-crop soybean stocks of 563 million
bushels, according to the average of estimates in a Reuters
poll. New-crop wheat stocks had been expected to come in at 934
The USDA pegged the 2017/18 wheat harvest at 1.820 billion
bushels, down from 2.310 billion bushels a year earlier. That
would mark the smallest U.S. wheat harvest since the 2006/07
marketing year, when farmers produced 1.808 billion bushels.
Production of hard red winter wheat, the largest wheat crop,
was seen falling to 737 million bushels from 1.082 billion
bushels a year ago. Analysts had been expecting total wheat
production of 1.859 billion bushels.
(Reporting by Mark Weinraub; Additional reporting by Tom
Polansek in Chicago; Editing by Paul Simao)