USDA Projecting Lower Exports Except for Sorghum

WASHINGTON, DC – USDA’s monthly World Agricultural Supply and Demand Estimates (WASDE) Report for April caught no one by surprise, as all major projections fell right in line with trade estimates on Thursday. The outlook for exports is lower across every major commodity, with the exception of sorghum. Domestic use estimates are lower for all crops and ending stocks were higher. The outlook for U.S. wheat is for lower exports, reduced domestic use, and increased ending stocks. Despite the larger ending stocks, the projected season-average farm price is raised $0.05 per bushel to $4.60 on updated NASS data as well as surging nearby cash and futures prices, partially resulting from the global COVID-19 pandemic. This month’s 2019/20 U.S. corn outlook is for reduced imports, greater feed and residual use, lower food, seed, and industrial use, and larger stocks. The season-average marketing weighted corn price received by producers is lowered 20 cents to $3.60 per bushel. U.S. soybean supply and use changes for 2019/20 include lower exports, seed use, and residual use, higher crush, and higher ending stocks. The season-average soybean price is forecast at $8.65 per bushel, down 5 cents. The 2019/20 U.S. cotton supply and demand forecasts show sharply lower exports, lower consumption, and higher ending stocks compared with last month. The projected marketing year average price received by upland producers of 59 cents per pound is down 1 cent from last month. Finally, for sorghum, USDA projects a 50 million bushel decline in domestic use, while exports are increased by 50 million bushels for no change in ending stocks. The projected season-average price is $3.25 per bushel, down a nickel from last month.