The estimate is above many analysts’ expectations, according to the latest Reuters poll.
The increase to stocks follows higher production and lower demand forecasts. Production was increased by 3.7MT to 655MT, mainly on the back of higher Chinese production, with increases also for Australia and Canada.
The new report also saw few alterations to the South American maize and soyabean crop estimates and tighter US soyabean stocks.
Ahead of the report much of the industry’s focus was on the South American maize and soyabean crops where planting is underway. With rain continuing to disrupt planting in Argentina, there is growing confidence that some land intended for maize will shift to the later planted soyabeans.
The Brazilian maize crop estimate was left unchanged also from November at 70MT. South American soyabean production numbers were left mainly unchanged including Brazil at 81MT.
Source: HGCA
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