Written Commentary
WASDE SUPPLY/DEMAND HIGHLIGHTS
On the surface the report was neutral/friendly corn & beans and neutral/bearish wheat.
Corn:
- US ending stocks unchanged at 1.540 bil. bu. 25 mil. above expectations
- Global stocks cut 1.4 mmt to 288.9 mmt
- No change to Brazil or Argentine production forecasts
- Brazil’s exports cut 2 mmt on greater domestic usage
- Chinese corn imports cut 2 mmt to only 8 mmt.
Beans:
- US ending stocks unchanged at 380 mil. bu. in line with expectations
- Global stocks cut 3 mmt to 121.4 mmt, vs. expectations of no change
- No change to Brazil or Argentine production forecasts
- Chinese crush was raised 2 mmt to 105 mmt
Wheat:
- US ending stocks rose 25 mil. to 819 mil. bu. above expectations
- Imports were revised up 10 mil. with exports down 15 mil.
- Global stocks rose 2.5 mmt to 260 mmt
- Australian production increased 2.1 mmt to 34.1 mmt, exports up 1 mmt
- Russian exports down .5 mmt to 45 mmt
- Chinese imports cut 1.5 mmt to 6.5 mmt
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