Written Commentary
USDA WASDE PRODUCTION HIGHLIGHTS
Today’s USDA data was supportive for corn on stronger than expected export demand.
Neutral for soybeans and wheat as the USDA made no changes to the US balance sheets.
Corn:
- US ending stocks lowered 125 mil. bu. to 2.029 bil., 95 mil. below expectations
- Exports raised another 125 mil. to record 3.2 bil.
- Demand for ethanol production and feed usage unchanged
- Global stocks down just over 2 mmt to 279.2 mmt vs. expectations of 280.7 mmt
- No changes to SA production, Ukraine down 3 mmt to 29 mmt, EU up 1 to 56.75 mmt
Soybeans
- US ending stocks unchanged at 290 mil. bu. vs. expectations of 302 mil.
- 5th consecutive year of no change in the December WASDE
- Global stocks rose .4 mmt to 122.4 mmt, in line with expectations
- No changes to SA production or Chinese imports
Wheat
- US ending stocks unchanged at 901 mil. bu. vs. expectations of 890 mi.
- HRS stocks up 5 mil. to 221 mil., white wheat stocks down 5 mil. to 87 mil.
- Global production up another 9 mmt to 837.8 mmt
- Global stocks rose 3.5 mmt to 274.9 mmt vs. expectations for 272.8 mmt
- Production increases for Canada +3 mmt, Argentina + 2 mmt, EU + 1.7 mmt, Australia & Russia + 1 mmt
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