US: Grain Stocks


March 31, 2020 11:00 CDT

Definition
This full-text report, issued four times yearly, contains stocks of all wheat, durum wheat, corn, sorghum, oats, barley, soybeans, flaxseed, canola, rapeseed, rye, sunflower, safflower, mustard seed, by States and U.S. and by position (on-farm or off-farm storage); includes number and capacity of off-farm storage facilities and capacity of on-farm storage facilities. The data is obtained via an off and on-farm stocks survey, the on-farm survey is a probability survey of farm operators, the off-farm stocks survey is enumerates the volume of grain in all known commercial grain storage facilities.

Description
Unlike the WASDE and other USDA reports, this report measures actual (counted) supply, not estimates or forecasts. It helps verify or correct the estimates in other the USDA reports, such as WASDE.

September is the most closely watched of the four quarterly reports, as it measures stock levels at the end of the marketing year for corn and soybeans. This number should equal the ending stocks number in the monthly Supply/Demand (WASDE) reports. If the September Grain Stocks number is different from the recent WASDE report, the next WASDE report will show an adjustment in supply and demand data to bring the numbers in line with each other. For example, if the WASDE reports have been calling for corn ending stocks to come in at 2.000 billion bushels and the September Grain Stocks report shows September 1 corn stocks at 1.892 billion, it would mean that actual supplies are smaller than projected. This would be a bullish surprise for the market, and we would expect the upcoming October WASDE report to reflect the new estimate.

The January, March and June stocks can also inform the rate of demand as the marketing year progresses.

The marketing year for wheat ends on May 31, and as such, the June Grain Stocks report is the most important for the wheat market.