December Grain Stocks: Highest in Past 30 Years

Among the many USDA reports published last week (including the January World Agricultural Supply and Demand Estimates report and the latest monthly World Markets and Trade reports from the Foreign Agricultural Service),

USDA’s National Agricultural Statistics Service (NASS) released its 2017 Crop Production Annual Summary and January Grain Stocks report, as well as the annual Winter Wheat and Canola Seedings last week. According to NASS, U.S. grain stocks of corn, soybeans, and wheat—as of December 1, 2017—totaled17.5 billion bushels, which is up 1%, despite production of these crops falling 5% from 2016.

It is the highest December level of stocks in the past 30 years. High grain stocks could sustain grain movements in coming months, as grain is brought out of storage and used for feed, exports, and other uses. Notably, December 1 stocks of corn, soybeans, and wheat were up 6% in Illinois and 17% in Missouri, but down 5% each in North Dakota and South Dakota. Changes of these magnitures for these important grain States may affect the distribution pattern of movements compared to last year.