All eyes were on the global supply situation as the United States Department of Agriculture (USDA) released its February World Agricultural Supply and Demand Estimates (WASDE) report on Wednesday.
The ongoing drought in Argentina, and the Russia/Ukraine war have many focused on global stocks and balance sheets.
Overall, the report was seen as generally neutral, with no major reaction in the futures.
According to the USDA, global production for soybeans is reduced 5.0 million tonnes to 383.0 million on lower crops for Argentina and Ukraine. Argentina’s crop is reduced 4.5 million tonnes to 41.0 million on lower area and dry weather conditions impacting yields. Ukraine’s crop is down 0.4 million tonnes on lower reported area harvested.
Global soybean crush is reduced 3.4 million tonnes mainly on lower crush for China, Pakistan, and Argentina. China’s crush is lowered on slow-than-expected pace to date. Pakistan’s crush is reduced on lower available supplies.
Supplies for the global wheat outlook have been raised to 2.4 million tonnes, to 1,060.50 million, primarily on higher production for Australia and Russia.
Australia’s production is raised 1.4 million tonnes to 38.0 million, which for wheat, would be a third consecutive record. Russian production is raised 1.0 million tonnes to 92.0 million on larger spring wheat harvested area.
Global corn production for the year is forecasted 3.6 million tonnes lower to 1,442.8 million. Foreign corn production is down, with a decline for Argentina partially offset by increases for the Philippines and Vietnam. For Argentina, production is cut based on reductions to both area and yield.
Global barley production is raised reflecting increases for Russia, Australia, and Uruguay.
The USDA shows a surprising cut to Argentina crops but for the most part this report was pretty uneventful. Cuts to US corn (reduction in ethanol) & beans (reduced crush) but exports stayed the same.
Corn unchanged to 1 higher, Beans 2 to 4 lower at 11:45a CST #AgTwitter pic.twitter.com/5hmvmZepB2— AgWest Commodities (@AgWest) February 8, 2023
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