There were few surprises in the latest United States Department of Agriculture’s WASDE report, with yields of principal crops left unchanged from previous reports.
The USDA reported new crop corn ending stocks at 2.648 billion, mostly inline with trade expectations.
According to Matthew Pot with Grain Perspectives, even China buying more corn on the heels of the report did not seem to impress the markets enough to make major moves. The focus on the supply/demand balance sheet will now shift to weather, as exports can only do so much, he says.
Projected feed and residual use was lowered in the report by 200 million bushels, reflecting a smaller crop and higher expected prices. Food, seed, and industrial use is raised 25 million bushels, based on projected increases in the amount of corn used for beverage and manufacturing, starch, and glucose and dextrose.
U.S. soybean ending stocks increased, with new crop ending stocks up 30 million bushels to 425 million, which was slightly less than expected. Here too, the focus will continue to be China buying more tonnage and the weather, Pot says.
Wheat has broken above a resistance region and is stretching higher. The USDA reported world stockpiles are down 1.3 million metric tons to 314.8, which is still high.
All U.S. wheat production was reported at 1.824 billion bushels, down 53 million from June and about 30 million bushels below expectations, Pot says. In turn U.S. wheat ending stocks were reported at 942 million.
Pot adds that foreign corn production is virtually unchanged from last month, as forecast increases for Russia and Bolivia are essentially offset by a reduction for Canada. Barley production is lowered for the EU and Morocco but raised for Canada.