U.S. Soybean and Wheat Stockpiles Higher Than Anticipated by Analysts

By Kirk Maltais

Stockpiles of U.S. soybeans and wheat through the third quarter of 2023 were above the expectations of analysts surveyed by The Wall Street Journal, sending those futures lower.

The Department of Agriculture's Quarterly Grain Stocks report, released Friday, shows soybean stocks at 268.2 million bushels and wheat stocks at 1.78 billion bushels. Analysts surveyed before the report's release expected soybeans stocks to be 244 million bushels, and wheat was expected at 1.77 billion bushels.

As a result, those futures on the Chicago Board of Trade extended losses seen in morning trading. Most-active soybean futures are down 1.5% and wheat is down 3.5%.

Additionally to the stocks report, the USDA also pegged total wheat production for 2023 at 1.81 billion bushels in its Small Grains Summary report, which is above the 1.73 billion bushels forecast by analysts.

Corn stocks fell more than anticipated by analysts, but the difference wasn't enough to support those futures on the CBOT. Stocks fell to 1.36 billion bushels, versus 1.43 billion bushels expected by analysts. Corn futures, meanwhile, are down 1.2%

Analysts say that the stocks report makes planting problems in South America more necessary to support an uptick in U.S. soybeans, while corn and wheat supplies remain "comfortable," said Doug Bergman of RCM Alternatives.

"With the larger bean supplies, it will make problems in South America even more important to spark a rally," Bergman said.

Write to Kirk Maltais at [e-mail]

(END) Dow Jones Newswires

09-29-23 1239ET