USDA April Supply Demand Report

The April USDA Supply Demand Report was released at 11 this morning. Going into the report, corn was 2-3 cents lower but beans were down hard, almost 20 cents a bushel. The Dollar Index was up more that 100 points and that likely was what was putting the grains under pressure.

The USDA now estimates corn carryover for this year at 1.77 billion bushels. That is up 50 million bushels from last month and 25 million bushels below that average trade guess going into the report. World corn carryover is estimated at 188.46 MMT compared to the March estimate of 1.85.28 MMT.

The USDA estimated soybean carryover for this year at 370 million bushels, which was down from last month at 385 million. World soybean carryover for this year was 89.55 MMT compared to last month's estimate of 89.53 MMT. There were only very minor adjustments to the production estimates for South American corn or soybean production this year. Corn and soybeans did rally off the lows when the report was released. I suspect that the market will now focus on the Dollar Index and weather.