WASDE report pushes corn, soybean futures higher

After a very poor day for equities for the second day in a row, the World Agricultural Supply and Demand Estimates (WASDE) report pushed corn and soybeans higher and wheat lower on the day in the futures market. The market did not move substantially today, but some analysts hoped the market would of moved higher than it did.

Here are some of the highlights from the report for wheat, corn, and soybeans.

Wheat

Global 2018/19 wheat supplies are reduced, primarily on lower production forecasts for Australia and Russia. Australia’s production decreased 1.5 million metric tonnes (MMT) to 18.5 million MMT on continued dry conditions and possible frost damage. Wheat futures finished lower on the day as the wheat carryover for the 2018/19 marketing year was up to 956 million bushels which is up 21 million bushels from last months report and up six million bushels from the pre-report estimates.

Corn 

For October’s 2018/19 U.S. corn outlook, it shows lower production, increased exports, reduced feed and residual use, along with larger ending stocks. Corn production is forecasted at 14.778 billion bushels, down 49 million on a reduced yield forecast. Harvested area is virtually unchanged from last month. Corn supplies are forecasted at a record high, as a smaller crop is more than offset by an increase in beginning stocks based on the September 28 grain stocks report. Exports are raised 75 million bushels reflecting U.S. price competitiveness and reduced exports for Russia. Projected feed and residual use was lowered by 25 million bushels based on a lower crop and indicated disappearance during 2017/18. Corn ending stocks for 2018/19 were raised 39 million bushels.

World corn stocks rise to 159.35 mmt, up from 157.03 mmt last month and only slightly above the trade at 159.30 mmt #oatt

— Arlan Suderman (@ArlanFF101) October 11, 2018

Soybeans

Soybean production is forecasted at 4,690 million bushels, down 3.5 million with higher yields offset by lower harvested area. The soybean yield is projected at 53.1 bushels per acre, up 0.3 bushels from the September forecast. Harvested area is reduced 0.6 million acres to 88.3 million.

USDA essentially makes no changes to its domestic soybean balance sheet other than incorporating higher beginning stocks number from the September stocks report. #oatt

— Arlan Suderman (@ArlanFF101) October 11, 2018