The March USDA World Ag Supply & Demand Estimates (WASDE) report made no changes to the U.S. corn supply, but multiple adjustments were made to the demand side. Total production for the 2014/2015 crop year is still pegged at 14.216 billion bushels. USDA increased Feed & Residual usage by 50 million bushels, to 5.300 billion bushels; decreased ethanol usage by 50 million bushels, to 5.200 billion bushels; and increased exports by 50 million bushels, to 1.800 billion bushels. The net was a 50 million bushel increase in demand, which lowered projected ending stocks of U.S. corn to 1.777 billion bushels. Back in the October 2014 WASDE report, USDA had pegged U.S. corn ending stocks at 2.081 billion bushels.
The global picture for corn supplies tightened, as USDA lowered estimated corn production in South Africa by 14%, from 13.5 million metric tons (mmt) to 11.5 mmt. Corn production was also slightly lowered in the FSU-12, with total production lowered from 43.77 mmt to 43.64 mmt. The only major corn producing country that saw an increase in their projected production was Argentina, where USDA raised its estimate from 23 mmt to 23.5 mmt. The overall reductions to global supply was also accompanied by an increase in global demand, which resulted in projected global ending stocks of corn decreasing from 189.64 mmt to 185.28 mmt.
The WASDE report was uneventful for the U.S. soybean balance sheet, as USDA made zero changes to the domestic supply and demand categories. Production remained at 3.969 billion bushels, with total demand pegged at 3.701 billion bushels, and ending stocks projected to be 385 million bushels.
USDA made no changes to the soybean supply side of the global picture this month. Argentina's bean production is still pegged at 56 mmt; Brazil's at 94.5 mmt; and China's at 12.35 mmt. Some small adjustments to the demand side resulted in global carryout increasing slightly, from 89.26 mmt to 89.53 mmt.
U.S. milk production for 2014 was still estimated to be 206 billion lbs., up 2.3% from 2013. For 2015, USDA is projecting U.S. milk production 400 million lbs. lower, to 211.1 billion lbs., an increase of 2.4% from 2014. Dairy cow numbers in the U.S. are estimated at 9.308 million head as of the end of January 2015. That is the largest the U.S. herd has been since January 2009. Since the end of December 2013, the herd has grown by 106,000 head.