Final 2022 Report Offers Disappointing Export Demand Estimates

WASHINGTON, DC – Weaker export demand appears to be pressuring commodity prices as USDA projects lower season-average farm prices for wheat and corn and steady prices for soybeans and cotton.

In their December World Agricultural Supply and Demand Estimates (WASDE) report, the National Agricultural Statistics Service (NASS) lowered corn exports based on higher domestic prices and a strong dollar, with foreign buyers switching to lower-priced alternatives.

The pressure is also spreading to sorghum as NASS projects a substantial decline in demand from China – the top foreign buyer – though domestic users may offset the reductions with increases in food, seed, and industrial feed use.

For cotton, USDA is projecting higher domestic production with record-high average yields but lower mill use and exports leading to a reduction in expected world demand and trade.
(SOURCE: All Ag News)