A closer look at sugar deliveries, demand growth USDA forecasts for demand growth

USDA estimates sugar deliveries for food use shrank by half a percent in 2017/18 and as of last WASDE forecasts a 0.6 percent increase for that volume in 2018/19 at 12.125 million STRV. This volume is unchanged from forecasts in the previous months, though [...]

WASDE: USDA lowers corn use, raises soybean crush

Today’s WASDE report confirmed the market’s expectation for lower corn utilization for ethanol, which USDA lowered by 25 million bushels, to 5.550 billion bushels. USDA also lowered U.S. corn exports by 75 million bushels, a move that was less expected but not out of [...]

Higher sugar stocks: Lower use, not lower demand for U.S. sugar?

USDA now estimates beginning sugar stocks for the 2018/19 marketing year at 2.008 million short tons raw value (STRV). The bump in estimated stocks comes from a reduction in miscellaneous use in USDA’s February WASDE report, which is explained as an adjustment to data [...]

Will USDA lower corn use for ethanol?

USDA will publish its corn S&D update on Friday—the first official look at crop production and use since Dec. 11. Exports and utilization for ethanol may be due for adjustment. During the government shutdown, USDA continued to report on grains inspected for export. For [...]

USDA maintains soybean S&D despite trade uncertainty

USDA left the domestic soybean balance sheet practically unchanged in this week’s crop report, perhaps due to uncertainty over U.S.-China trade relations. After the G20 meeting, the U.S. and Chinese presidents were eager to signal that the trade war could be resolved. Both agreed [...]

Signs of faltering ethanol demand?

After more than a year of record ethanol output, production may finally be starting to slow. In its December WASDE report, USDA reduced total corn demand for ethanol manufacturing by 50 million bushels to 5.6 billion bushels for 2018/19.  Ethanol margins have been squeezed by low crude oil prices paired with an increase in corn futures prices. Ethanol futures, conversely, reached the lowest [...]