USDA Increases Season-Average Price for Most Crops

WASHINGTON, DC – Markets reacted favorably to USDA’s latest monthly World Agricultural Supply and Demand Estimates (WASDE) report on Tuesday. Corn, soybeans, wheat, and cotton all closed higher on the overall positive news for 2021.

For wheat, USDA says the outlook is for stable supplies, higher domestic use, unchanged exports, and lower ending stocks. Ending stocks are reduced 26 million bushels to 836 million, down 19 percent from last year. The season-average farm price is raised 15¢ per bushel to $4.85 for the remainder of the marketing year.

This month’s U.S. corn outlook is for lower production, reduced corn used for ethanol, smaller feed and residual use and exports, and decreased ending stocks. Corn production is estimated at 14.182 billion bushels, down 324 million on a lower yield and slight reduction in harvested area. The season-average corn price received by producers is raised to $4.20 per bushel.

Domestic sorghum production is estimated 2 million bushels higher as an increased harvested area more than offsets a reduction in yield. Food, seed, and industrial use are lowered 10 million bushels on lower sorghum used for ethanol but exports are raised 15 million bushels reflecting larger exports to China.

U.S. soybean production is estimated at 4.1 billion bushels, down 35 million led by reductions for Minnesota, Iowa, and Kansas. The harvested area is estimated at 82.3 million acres, up slightly from the previous report. Yield is estimated at 50.2 bushels per acre, down slightly. Soybean and soybean product prices are forecast higher this month. The U.S. season-average soybean price is projected at $11.15 per bushel, up 60¢ as cash prices in Central Illinois reach 6-year highs.

The U.S. cotton outlook shows higher exports, and lower production, and ending stocks this month. Production is lowered nearly 1 million bales to 15 million running bales, led by a 500,000-bale decline in Texas. With lower production and higher demand, domestic ending stocks are 1.1 million bales lower relative to last month, at 4.6 million bales or 26 percent of use. The upland season-average price is projected 3¢ higher this month, at 68¢ per pound.

In 2021, the WASDE report will be released on February 9, March 9, April 9, May 12, June 10, July 12, August 12, September 10, October 12, November 9, and December 9.
(SOURCE: All Ag News)