OSU Grain Economist Dr. Kim Anderson Dissects the September WASDE Numbers from USDAThu, 12 Sep 2019 18:53:26 CDT
In his weekly visit with SUNUP host Dave Deken this weekend, Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson talks about the September 2019 World Agriculture Supply and Demand Estimates (WASDE) report.
In the last report, the market and producers didn’t quite believe some of the numbers that were reported. Anderson says the numbers are a little more believable this time around. Especially in the wheat production, while they didn’t change the U.S. production, but they did change the annual price from $5.00/bu to $4.80/bu.
“If you will remember right now, the Oklahoma price is about a dollar underneath that projected average annual price,” he said. “And since June 1, has averaged about $4.15/bu.”
The USDA increased the world ending stocks just a little bit up to 10.5 billion bushels, but they lowered Russian production down to 2.66 billion bushels. Anderson says the irony in that, is that Russia released their own estimate and increased their projection to 2.75 billion bushels. They also lowered Australia to 698 million bushels down from 772 million bushels, he added.
“If you look at corn production, which is where the big discrepancy was last month,” Anderson said. “It was 13.9 billion bushels, and the USDA essentially lowered it to 13.8 billion bushels. The prerelease estimate for that was 13.67 billion bushels. So the USDA is still above the analyst projections, but they are at least closer.”
The USDA projected soybean production 3.63 billion bushels while the analysts were at 3.57 billion bushels, Anderson said. Cotton is projected for the world at 125.6 million bales, slightly higher than the 124 million bales.
“The big news was that Mexican production was increased and their consumption was decreased,” he said. “Of course Mexico and Japan are our number one and number 2 importers of wheat, so that possibly means less exports to Mexico.”
This week on SUNUP, we start with an update about summer crops from Josh Lofton.
- Then, in Cow-Calf Corner, Glenn Selk explains the possibility of a cow having difficulty calving two years in a row.
- Kim Anderson says the latest WASDE report comes closer on corn, but there is little change otherwise.
- Rodney Jones has information about the upcoming Rural Economic Outlook Confernece.
- Amy Hagerman says producers should be thinking about ARC/PLC decisions and she has dates for upcoming events.
- Alex Rocateli explains what to look for when selecting varieties of alfalfa.
- In the Mesonet weather report, Wes Lee shows us how soil temperatures compare to normal ahead of winter crop planting. Gary McManus says drought is strengthening in southwestern Oklahoma and the outlook does not look promising for it weakening.
- Finally, we travel to Pottawatomie County to learn how a 4-H club grew out of a need in a rural school.
Join us for SUNUP:
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Sunday at 6 a.m. on OETA-TV
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