USDA Grain Stocks Report Delivers Bearish Surprise for Corn

The USDA's quarterly Grain Stocks report has delivered a bearish surprise for corn, according to StoneX Chief Commodities Economist Arlan Suderman. The September 1 corn stocks were reported at 177 million bushels, which is above the average trade estimate.

This larger inventory suggests that the USDA may have been overstating feed usage, as Suderman noted. If the export and ethanol numbers are correct, then a downward revision in feed usage will be necessary in the October 9 WASDE report.

The report also showed that soybean stocks were nine million bushels below trade expectations, while wheat stocks were 26 million bushels below expectations. Spring wheat production came in below expectations as well.