USDA’s Supply and Demand Estimates Stable

WASHINGTON, DC – On Tuesday, USDA released their monthly World Agricultural Supply and Demand Estimates or WASDE report.

The outlook for 2020/21 U.S. wheat this month is for stable supplies, higher domestic use, unchanged exports, and reduced ending stocks. All wheat exports and imports are unchanged this month but there were offsetting by-class changes for both exports and imports. Projected 2020/21 ending stocks are reduced 6 million bushels to 877 million, down 15 percent from last year. The season-average farm price is unchanged at $4.70 per bushel.

This month’s 2020/21 U.S. corn outlook is for lower production, reduced feed and residual use, larger exports, and smaller ending stocks. Corn production is forecast at 14.507 billion bushels, down 215 million with a reduction in yield to 175.8 bushels per acre. Corn exports are raised 325 million bushels to 2.650 billion, which if realized would be record high. The corn price is raised 40 cents to $4.00 per bushel.

The U.S. soybean outlook for 2020/21 is for lower production and ending stocks. Soybean production is forecast at 4.17 billion bushels, down 98 million on lower yields. Lower yields are reported for several major producing states, including Illinois, Iowa, Indiana, Ohio, and Nebraska. With reduced production, soybean ending stocks are projected at 190 million bushels, down 100 million from last month. The U.S. season-average soybean price for 2020/21 is forecast at $10.40 per bushel, up 60 cents.

This month’s 2020/21 U.S. cotton estimates are virtually unchanged from October. The U.S. production forecast is marginally higher, at 17.1 million bales, while domestic mill use and exports are unchanged. U.S. ending stocks remain at 7.2 million bales and, at 42 percent of use, would be the highest stocks-to-use ratio since 2007/08. The marketing-year average price received by upland producers is forecast at 64.0 cents per pound, 5 percent (3 cents) above the October forecast, and 7 percent higher than 2019/20’s price of 59.6 cents.

(SOURCE: All Ag News)