This Week on SUNUP - OSU's Kim Anderson Anticipates Little Change in Upcoming WASDE ReportThu, 07 Sep 2017 18:14:46 CDT
This week on SUNUP - Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson and host Dave Deeken discuss pre-report expectations for the September 2017 edition of the US Department of Agriculture’s World Agricultural Supply and Demand Estimates, scheduled for release this coming Tuesday, September 12th.
According to Anderson, little is expected to change in this report from last month. He compared what minor edits might show up. He says, analysts believe the USDA will lower expected corn production to 14 billion bushels even, from 14.15 billion last month. Soybean production is expected to be lowered from 4.38 billion bushels last month to 4.32 billion.
In ending stocks, wheat is anticipated to be lowered from 933 million bushels, to 914 million. Corn ending stocks show a little downward movement from 2.27 billion bushels to 2.13 billion. And, soybean stocks expected to get the biggest adjustment from 475 million bushels to 439 million.
Expectations for world production are coming in at 7.8 billion bushels for corn, down from 7.9 billion. Soybeans showing a miniscule drop in the world market of about 20 million bushels, leaving expectations at roughly 3.6 billion. And finally, wheat probably stands to lose another 20 million bushels down from 9.73 to 9.71 billion.
In addition, Anderson says cotton markets are paying attention to the Hurricanes in the Gulf, but what is impacting prices even more than that, is lower worldwide production and cooler weather across the Great Plains, which could hinder the crops maturity.
Looking ahead, though, when it comes to the price of wheat next June, Anderson says you must take into account the significant increase in worldwide production, specifically focused in the former Soviet Union states. He says for prices to get back up around $5.00 - the US wheat production would essentially need to be taken offline for a time, to get world production levels to 26 billion bushels or below.
You can watch their visit tomorrow or Sunday on SUNUP- but you can hear Kim's comments right now by clicking on the LISTEN BAR below.
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