No Surprises in December WASDE ReportWed, 10 Dec 2014 17:11:15 CST
Commodity markets showed little reaction to the latest US Department of Agriculture grain stocks report. On Wednesday, USDA released the December World Supply and Demand Estimate report. Tom Leffler of Leffler Commodities said overall the report held few surprises and should be very little impact on commodity prices.
"The December report does not have any changes made to our US production numbers, so you see slight changes made in the tables to supply or any demand changes out there," Leffler said. "So that makes this report not quite as big as all of the other reports are the other 11 months out of the year."
Radio Oklahoma Network's Leslie Smith visited with Leffler Wednesday after the market closed. Click on the LISTEN BAR below to listen to the full interview.
In the report USDA pegged US ending corn stocks at 1.998 billion bushels. This was 10 million bushels lower than the November estimate and 29 million bushels lower than trade expectations. Leffler said the lower ending stocks came from USDA increasing food, seed and industrial usage. He said US corn ending stocks are still sitting at the highest level of the past decade.
The nation's wheat ending stocks came in at 654 million bushels, which was inline with trade estimates. This was 10 million bushels higher than last month's estimate. Leffler this came from an increase wheat imports into the US.
US soybean ending stocks came in at 410 million bushels. This was 40 million bushels lower than the November estimate. Leffler said stocks figure from USDA came from an increase in US soybean export sales by 40 million bushels for a record 1.766 billion bushels. He said US soybean ending stocks are at the highest level of the past eight years.
In looking at the global numbers in the WASDE report, corn and wheat ending stock increased, while soybeans dropped slightly. Leffler said USDA increased world corn ending stocks by 700 thousand metric ton over the November report and world corn ending stocks are at the highest level of the past 15 years.
Global wheat stocks increased by two million metric ton. Leffler said that was mostly attributed to an increase in Canadian wheat production. World stocks remain at the highest level of the past three years.
World soybean ending stocks were 410 million metric ton less than less month, but still remain at record levels. Leffler said USDA did not adjust Brazil or Argentina's soybean ending stocks. On Wednesday the Brazilian government agency Conab raised its domestic soybean production forecast to 95.8 million metric tons. Leffler said that was higher than USDA's estimate of 94 million and almost ten million tons bigger than last year's crop and was negative on the US soybean market.
After the report came out wheat, corn and soybeans all closed lower on Wednesday. Leffler said the market does not have a lot to trade off this report. He expects the market to be quiet for the next 30 days. He said traders will begin to focus on the January report from USDA that will have the final production numbers for corn and soybeans, the quarterly grain stocks and the first winter wheat acreage numbers.
Click here for the full WASDE report.
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