WASHINGTON — In the first forecast for the 2015-16 marketing year, the carryover of U.S. wheat on June 1, 2016, was projected at 793 million bus, up 84 million bus, or 12%, from the current year estimate of 709 million bus, which was raised 25 million bus, or 4%, from the April estimate, the U.S. Department of Agriculture said in its May 12 World Agricultural Supply and Demand Estimates.
The U.S.D.A. 2015-16 all wheat carryover number was well above the average trade expectation of 727 million bus, and the 2014-15 carryover also was above the trade average of 689 million bus. Projected 2015-16 ending stocks would be the highest since 2010-11 if realized, the U.S.D.A. said.
For 2014-15 wheat imports were revised up 5 million bus from April, to 150 million bus, and exports were revised down 20 million bus, to 860 million bus, resulting in a 25-million-bus boost in 2015 carryover.
Total wheat supply in 2015-16 was projected at 2,937 million bus, up 171 million bus, or 6%, from 2,766 million bus in 2014-15. The U.S.D.A. projected 2015 U.S. all wheat production at 2,087 million bus, up 3% from 2,026 million bus in 2014, based on harvested area projected at 48 million acres, up 3% from 46.4 million, and yield at 43.5 bus an acre, down slightly from 43.7 bus last year. U.S. wheat imports were projected at 140 million bus, down 10 million bus from 2014-15.
Total 2015-16 domestic wheat use was projected at 1,219 million bus, up 22 million bus, or 2%, from 1,197 million bus in 2014-15 based on higher exports, food use and feed and residual use. Wheat used for food in 2015-16 was projected at 967 million bus, up 1% from 960 million bus in 2014-15, and seed use at 72 million bus, down 6% from 77 million bus. Feed and residual use in 2015-16 was projected at 180 million bus, up 20 million bus, or 13%, from 160 million bus in 2014-15. Exports were projected at 925 million bus, up 65 million bus, or 8%, from 860 million bus this year. Total use was projected at 2,144 million bus, up 87 million bus, or 4%, from 2,057 million bus this year.
The initial all wheat average price for 2015-16 was projected at $4.50@5.50 a bu, compared with $6 a bu estimated for the current year and $6.87 a bu in 2013-14.
Only minor changes were made in 2014-15 wheat-by-class numbers. Initial wheat-by-class estimates for 2015-16 will be issued by the U.S.D.A. in July.
Carryover of hard winter wheat on June 1, 2015, was estimated at 280 million bus, up 8 million bus from April based on a 3-million-bu reduction in 2014-15 domestic use (to 435 million bus) and a 5-million-bu reduction in exports (to 270 million bus).
Soft red winter wheat carryover was estimated at 174 million bus, up 5 million bus from April, based on a 5-million-bu decrease in exports (to 135 million bus).
Hard red spring wheat carryover in 2015 was projected at 202 million bus, up 12 million bus from April, based on a 5-million-bu increase in imports, a 3-million-bu increase in domestic use (to 313 million bus), and a 10-million-bu reduction in exports (to 280 million bus).
White wheat carryover was unchanged from April at 38 million bus as was durum carryover at 16 million bus.
U.S. corn carryover on Sept. 1, 2016, was projected at 1,746 million bus, down 105 million bus, or 6%, from an upwardly revised 1,851 million bus in 2015. The U.S.D.A. 2015-16 U.S. corn carryover was above the trade average that was near 1,736 million bus. The 2014-15 carryover was slightly above the trade average of 1,848 million bus.
The U.S.D.A. projected 2015 U.S. corn production at 13,630 million bus, down 586 million bus, or 4%, from a record 14,216 million bus in 2014 based on harvested area of 81.7 million acres, down 1.4 million, or 2%, from 83.1 million acres in 2014, and yield of 166.8 bus an acre, down 4.2 bus, or 2%, from a record 171 bus an acre in 2014. The average price of corn was projected to range from $3.20@3.80 a bu in 2015-16, compared with $3.55@3.75 a bu estimated for the current year and $4.46 a bu in 2013-14.
“Forward pricing the 2015 crop have been at substantially lower levels than similar bids offered for the 2014 crop,” the U.S.D.A. said.
U.S. total corn supply in 2015-16 was projected at a record 15,506 million bus, up 34 million bus from 15,472 million bus in 2014-15, based on beginning stocks of 1,851 million bus (up 50% from 1,232 million bus in 2014-15), imports of 25 million bus (unchanged) and 2015 production of 13,630 million bus.
Feed and residual use for 2015-16 was projected at 5,300 million bus, up 50 million bus, or 1%, from 5,250 million bus in 2014-15. Food, seed and industrial use for next year was projected at 6,560 million bus, up 13 million bus from a downwardly revised 6,547 million bus 2014-15 (based on corn use for ethanol projected at 5,200 million bus, unchanged from 2014-15, and for food, seed and industrial at 1,360 million bus, up 13 million bus). Total domestic use was projected at 11,860 million bus, up 63 million bus from 11,797 million bus in 2014-15.
Corn exports were projected at 1,900 million bus in 2015-16, up 75 million bus, or 4%, from and upwardly revised 1,825 million bus in 2014-15. Total use was projected at a record 13,760 million bus, up 138 million bus, or 1%, from 13,622 million bus in the current year.
U.S. soybean carryover on Sept. 1, 2016, was projected at 500 million bus, up 150 million bus, or 43%, from a downwardly revised 350 million bus in 2015. The 2015-16 U.S.D.A. soybean carryover number was well above the average trade expectation near 438 million bus. The 2014-15 number was below the trade average of 363 million bus.
The U.S.D.A. projected 2015 U.S. soybean production at 3,850 million bus, down 119 million bus, or 3%, from a record 3,969 million bus in 2014, based on harvested area at 83.7 million acres, up 600,000 acres, or 1%, from 83.1 million acres in 2014, and yield at 46 bus an acre, down 1.8 bus, or 4%, from 47.8 bus an acre last year. The average price of soybeans in 2015-16 was projected to range from $8.25@9.75 a bu, compared with $10.05 a bu this year and $13 a bu in 2013-14.
U.S. total soybean supply in 2015-16 was projected at 4,230 million bus, up 139 million bus, or 3%, from 4,091 million bus in 2014-15, and based on beginning stocks of 350 million bus, production of 3,850 million bus and imports of 30 million bus.
Domestic soybean crush in 2015-16 was projected at 1,825 million bus, up 20 million bus, or 1%, from 1,805 million bus in 2014-15. Exports were projected at 1,775 million bus, down 25 million bus, or 1%, from an upwardly revised 1,800 million bus in 2014-15. Seed use was projected at 92 million bus, down 6 million bus, residual at 38 million bus, unchanged, and total use at 3,729 million bus, down 12 million bus from 3,741 million bus in 2014-15.
Wheat and corn futures prices traded modestly higher after the report while soy complex futures prices were lower.
U.S. rice carryover on Aug. 1, 2016, was projected at 47.4 million cwts, up 4.5 million cwts, or 10%, from 42.9 million cwts this year. U.S. rice production in 2015 was projected at 219 million cwts, down 2 million cwts from 2014. The average farm price was projected to range from $12.30@13.30 a cwt in 2015-16 compared with $13.20@13.60 a cwt in 2014-15 and $16.30 a cwt in 2013-14.
Wheat production was based on a combination of survey results for winter wheat and trend projections for durum and other spring. The first survey-based spring wheat, corn, soybean and rice numbers will be released in August.