Stockpiles of U.S. soybeans and wheat for the third quarter of 2023 have exceeded the expectations of analysts, causing futures to decline. The Department of Agriculture’s Quarterly Grain Stocks report, released on Friday, reveals that soybean stocks are currently at 268.2 million bushels, while wheat stocks are at 1.78 billion bushels. Pre-report estimates had projected soybean stocks to be 244 million bushels and wheat stocks to be 1.77 billion bushels.
The Chicago Board of Trade saw further losses in morning trading as a result of these higher stock levels. Most-active soybean futures dropped by 1.5%, and wheat futures fell by 3.5%.
In addition to the stocks report, the USDA’s Small Grains Summary report showed that total wheat production for 2023 is estimated to reach 1.81 billion bushels, surpassing the analysts’ forecast of 1.73 billion bushels.
Although corn stocks declined more than anticipated by analysts to 1.36 billion bushels, compared to the expected 1.43 billion bushels, it was not enough to bolster corn futures, which are down by 1.2%.
Experts emphasize that the stocks report highlights the importance of planting issues in South America for supporting a potential increase in U.S. soybeans. Meanwhile, corn and wheat supplies maintain a “comfortable” level, according to Doug Bergman of RCM Alternatives.