USDA Expecting Higher Prices for Wheat and Corn

WASHINGTON, DC – USDA released their latest World Agricultural Supply and Demand Estimates (WASDE) report Tuesday morning. According to the National Agricultural Statistics Service (NASS), the supply and demand outlook for U.S. wheat is largely unchanged this month. The season-average farm price is raised 15¢ per bushel to $5.00 for the remainder of the marketing year.

This month’s domestic corn outlook is for higher exports and lower ending stocks. Exports are raised 50 million bushels, reflecting historically large corn purchases by China. With no other use changes, corn ending stocks are lowered 50 million bushels from last month and the season-average corn price is raised 10¢ to $4.30 per bushel.

The U.S. soybean outlook is for increased exports and lower ending stocks. Soybean exports are projected at 2.25 billion bushels, up 20 million from last month reflecting record marketing-year exports through January and a slow start to Brazil’s export season resulting from harvest delays. With crush unchanged, soybean ending stocks are reduced 20 million bushels to 120 million. If realized, soybean ending stocks would be down 77 percent from last season and the lowest since 2013/14. The U.S. season-average soybean price is forecast at $11.15 per bushel, unchanged from last month.

Cotton supply and demand forecasts show slightly higher exports and lower ending stocks relative to last month as production and domestic mill use are unchanged. The export forecast is raised 250,000 bales to 15.5 million based on a strong pace of shipments to date and ending stocks are now estimated at 4.3 million bales, equivalent to 24 percent of total disappearance. The upland cotton marketing year average price is projected at 68¢ per pound, unchanged from last month’s estimate
(SOURCE: All Ag News)