Global Wheat Supplies Grow, Corn and Soybeans Hold Steady, Reaction From Tom LefflerWed, 09 Dec 2015 16:33:05 CST
Few changes were found in the latest global grain stocks report. The U.S. Department of Agriculture Wednesday released the latest World Agricultural Supply and Demand Estimates (WASDE). Market Analyst Tom Leffler of Leffler Commodities said the global corn and soybean ending stocks were left virtually unchanged from a month ago, but wheat supplies continue to increase to record levels.
“We continue to find negative news for our wheat,” Leffler said.
Radio Oklahoma Network's Leslie Smith interviewed Leffer Wednesday for analysis of the WASDE report. Click or tap on the LISTEN BAR below to listen to the full interview.
Global wheat supplies for 2015/16 increased by 2.3 million tons primarily on larger production but also higher beginning stocks. World wheat production remains record high and was raised 1.9 million tons to 734.9 million. The primary production change was for Canada, which was raised 1.6 million tons to 27.6 million on a Statistics Canada report. Global ending stocks were projected 2.6 million tons higher with large increases for the European Union and Canada partially offset by decreases for Argentina and Ukraine.
Global corn ending stocks for 2015/16 were left nearly unchanged with higher projected stocks for the United States and Canada offset by lower projected stocks for Brazil and EU. U.S. corn ending stocks were projected to be 25 million bushels higher at 1,785 million bushels. The projected range for the season-average corn farm price was unchanged at $3.35 to $3.95 per bushel, in line with prices reported to date and current futures price levels.
Global soybean production was projected at 320.1 million tons, down 0.9 million. Total U.S. oilseed production for 2015/16 was forecast at 117.7 million tons, down slightly due to a small reduction in cottonseed. Soybean supply and use projections for 2015/16 were unchanged from last month. Soybean ending stocks were unchanged at 465 million bushels. If realized that would be the highest since 2006/07. The U.S. season-average soybean price for 2015/16 was forecast at $8.15 to $9.65 per bushel, unchanged from last month. Soybean meal was forecast at $290 to $330 per short ton, down 10 dollars on both ends of the range. Soybean oil was forecast at 28.5 to 31.5 cents per pound, up one cent on both ends.
Leffler said this latest WASDE report does not offer anything price supportive for wheat, corn or soybeans. Traders will anticipate bigger adjustments in the January WASDE report. Leffler said January’s report will offer final production numbers for corn and soybeans, the winter wheat acreage estimate and ending stock adjustments.
Click here for the full WASDE report.
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