Written Commentary
USDA WASDE PRODUCTION HIGHLIGHTS
As expected, no significant changes to the US balance sheet in today’s USDA WASDE. Global corn inventories were above expectations.
Corn:
- Ending stocks left unchanged at 2.127 bil. bu. with no changes to demand
- Global inventories rose nearly 3 mmt to 292.8 mmt, vs. expectations for no change
- Production rose 1.7 mmt in Ukraine, 1 mmt in Brazil while down 1 mmt in Argentina
Soybeans:
- Ending stocks were unchanged at 350 mil. bu. as a 5 mil. bu. increase in crush offset by 5 mil. bu. higher imports
- Bean oil usage for biofuel production cut 800 mil. lbs. to 14 bil. largely offset by 750 mil. lb. increase in other domestic use
- Meal imports up 75k tons with domestic use up 400k tons offsetting higher supplies from added crush
- Global stocks little changed at 125.3 mmt
- Brazilian production unchanged at 180 mmt while Argentina cut .5 mmt to 48 mmt
- Chinese imports unchanged at 112 mmt with crush holding at 108
Wheat:
- Ending stocks left unchanged at 931 mil. bu. with no changes to demand or various classes
- The US Ave. Farm price rose $.05 bu. to $4.95
- Global stocks down .5 mmt to 277 mmt
- Russian and Ukraine exports both cut .5 mmt with EU down 1 mmt
- Argentine exports up 1.5 mmt while Australian production down 1 mmt to 36 mmt
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