Grain Stocks, Planting Intentions Reports Good News for Livestock
As we closed out a week, a month and a quarter, Friday’s grain trade had plenty of things to talk about following the release of the USDA quarterly grain stocks and planting intentions report.
In corn, planted acres are projected to be 90 million. That comes in 1 million acres less than the average guess and 4 million acres less than where they were in 2016. Ending stocks were posted at 8.62 billion bushels, a 10% increase over last year at this time.
Soybean plantings rose to a record level of 89.5 million acres, or at least that’s what USDA is projecting will happen this year. That represents a 6.1 million acre increase over last year and is a 1.4 million acre increase over the average estimate. Stocks were 1.73 billion, that’s 13% greater than where they were in March 2016, just north of the average guess.
Wheat plantings fell to 46.1 million acres, giving up 4 million acres from last year. Stocks were largely in line with the estimate coming in 21% greater than 2016.
So what is the bottom line?
When considering large world ending stocks of corn, soybeans, and wheat, and assuming a normal growing season, these forecasts project a large world protein supply and a balanced world starch supply.
Good news for those buying feed.