Positive Demand News for Corn and Soybeans in Latest WASDE ReportFri, 10 Jun 2016 14:36:42 CDT
The USDA released both their June Crop Production Report on Friday morning, as well as the monthly WASDE report showing domestic and international supply and demand data. According to Dr. Chad Hart of Iowa State University, the WASDE report contains some very positive demand news for corn and soybeans. The following is a blog he has posted on the Iowa State Extension Website after the report was released on Friday:
"USDA’s June updates contained good news on the demand front for corn and soybeans. International demand continues to strengthen, while domestic usage holds steady. With no major changes on the supply side, this implies lower ending stocks and projections of higher prices. Starting with corn, the losses and delays in the South American harvest have opened up some off-season selling opportunities for the U.S. Old crop (2015/16) exports were raised 100 million bushels as a result. Although corn imports were increased slightly, the overall impact for old crop corn is a 95 million drop in ending stocks and a 10 cent increase in the season-average price to $3.70 per bushel. That drop in ending stocks, combined with another increase in new crop (2016/17) exports of 50 million bushels, lowered new crop ending stocks by 145 million bushels. The changes added 15 cents to the new crop corn season-average price estimate, raising it to $3.50 per bushel.
"For soybeans, both old crop domestic and international demand were on the upswing. Crush added 10 million bushels, while exports grew by 20 million bushels. With the 30 million bushel drop in old crop ending stocks, USDA raised its 2015/16 season-average price by 20 cents to $9.05 per bushel. As with corn, the export demand increase extended into the new crop as well, adding another 15 million bushels. That pushed new crop ending stocks below 300 million bushels and lifted the 2016/17 season-average price estimate by 40 cents, to $9.50 per bushel."
To review the complete WASDE report, click here.
To review the USDA June Crop Production Numbers, click here.
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