USDA trimmed its forecasts for corn and wheat ending stocks in its July World Agricultural Supply and Demand Estimates report on Friday, citing stronger demand and reduced wheat production, while leaving soybean supplies largely unchanged. USDA lowered projected 2026-27 U.S. corn ending stocks by half a billion bushels, as export demand increased. Wheat ending stocks were cut to 722 million bushels after USDA reduced its forecast for U.S. wheat production, which would mark the smallest crop since 1970.
The report follows concerns about drought-reduced wheat yields in parts of the Plains and continued strong global demand for U.S. grain exports. Analysts surveyed before the report had generally expected smaller supplies for both corn and wheat. Grain futures moved higher following the release, with wheat posting the strongest gains. Corn and soybean futures also advanced modestly amid expectations for continued export demand and ongoing weather uncertainty during the U.S. growing season.
-NAFB