Agricultural News
No Big Surprises in February WASDE Report
Tue, 10 Feb 2015 16:37:03 CST
The latest global grain stocks report was fairly quiet. The U.S. Department of Agriculture released the monthly World Agricultural Supply and Demand Estimate (WASDE) report Tuesday morning. Market Analyst Tom Leffler of Leffler Commodities said it was a typical February report.
"No big surprises, nothing really catching anyone off guard, no market moving numbers took place," Leffler said. "We saw a little tweaking of the numbers and that's pretty much it."
Radio Oklahoma Network's Leslie Smith caught up with Leffler to review the latest WASDE report. Click on the LISTENBAR below to listen to the full interview.
In looking at the U.S. numbers, soybean ending stocks were lowered by 25 million bushels from last month to 385 million bushels. Leffler said that a result of imports increased by 10 million bushels, crush increased by 15 million bushels and exports increased by 20 million. He said that was no big surprise to the market, but a little lower than what the trade anticipated.
U.S. corn ending stocks were lowered by 50 million bushels from last month coming in at 1.827 billion bushels. Leffler said feed and residual use was lowered by 25 million bushels and ethanol usage was increased by 75 million bushels.
In the report, U.S. wheat ending stocks were mostly negative. Traders were expecting an increase, but the report showed a larger than expected boost in the nation's wheat supplies. Leffler said wheat ending stocks were increased by five million bushels to 692 million bushels, which was more than what the trade was looking for. Imports were lowered by 20 million bushels, exports were lowered by 25 million for a net increase in ending stocks of five million bushels.
In looking at the world numbers, traders were watching the changes made to the South American soybean crop estimates. Leffler said USDA raised the estimate for Argentina's soybean production by one million metric tons to 56 million metric tons (MMT), while USDA lowered Brazil's soybean production by 1 MMT down to 94.5 MMT.
In looking at the world ending stocks, USDA pegged global soybean ending stocks at 1.52 MMT less than last month. Global corn ending stocks were increased by 490,000 MT more than last month. Global wheat ending stocks were raised by 1.85 MMT, which was negative for wheat further showing how plentiful wheat is in the world right now.
"Overall there was nothing Earth shattering out of this report, but the disappointing thing, there was nothing friendly for this report," Leffler said.
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