May contracts of soybeans, soy products and all three U.S. wheats closed higher after USDA stayed with the same U.S. ending stocks estimates for corn, soybeans and wheat Tuesday. May corn and oats were slightly lower with increased chances for precipitation in the forecast. The disappointing result of the WASDE report with the USDA leaving corn exports unchanged, weighed on futures values, while soybeans with an initial bearish reaction, ended up recovering to close higher across the board.
USDA held pat on demand and domestic ending stocks for corn, soybeans and wheat in the March World Agricultural Supply and Demand Estimates. Corn ending stocks held at 1.502 billion bushels (bb) for the 2020-21 corn crop and soybeans held at 120 million bushels (mb). USDA increased Brazil’s soybean production estimate by 1 million metric ton (mmt) to 134 mmt. It reduced Argentina production by 0.5 mmt to 47.5 mmt.
Chicago wheat is the big beneficiary of the report, with white wheat stocks down 19 million bushels on better export demand, and some rumors that China may be shopping for soft red wheat. Global wheat stocks were nearly 4 million metric tons (mmt) lower than pre-report estimates.
The WASDE report thankfully didn’t shake up any of the support rallying in the livestock contracts as the contracts are trying to trade fully higher. Tuesday’s WASDE report shared that beef production for 2021 was increased by 40 million pounds, but pork production for 2021 fell by 30 million pounds, which, alongside the weaker broiler and turkey configurations, leads to the reduction in total red meat production in 2021.
Farm and Ranch Director Jesse Allen has our full report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
You can also go more in-depth with today’s numbers and close by listening to today’s episode of Market Talk with Jesse Allen and Matt Bennett from AgMarket.net by clicking here (https://americanagnetwork.com/market-talk-podcast/), here (https://www.markettalkag.com) or in the player link below:
