Once the July WASDE was released on Monday, we saw Minneapolis wheat futures surge higher following a more bullish spring wheat production number than traders had expected, along with a return of the heat and dryness that has plagued the Northern Plains, the northwest and the Canadian Prairies for months. Other spring wheat production fell to just 345 million bushels (mb) compared to 586 mb a year ago, impacted by drought.
There was no change to US corn or soybean yields in the report. New crop corn stocks slightly higher at 1.432 billion bushels, up from 1.357 last month. Soybean ending stocks unchanged at 155 million bushels. Wheat ending stocks at 665 million bushels, down from 770 million the previous month and below trade at 729 million. Also, USDA is at 93 mmt production for Brazil.
You can read the full WASDE here: https://www.usda.gov/oce/commodity/wasde/wasde0721.pdf
The hog market was hoping to see stronger export anticipations in the morning’s WASDE report, but both pork exports and imports were unchanged from last month. Even though China is continuing to struggle with African swine fever, we must remember that U.S. pork prices are still higher than those of other nations. Cattle were mixed with live cattle a little higher and feeder cattle under pressure from higher grain prices once again.
Farm and Ranch Director Jesse Allen has our closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
Also, more analysis with Jesse Allen and Bryan Doherty on today’s episode of Market Talk below AND initial reactions from the WASDE and analysis with Arlan Suderman of StoneX:
https://open.spotify.com/episode/5AcEzmw3TCFh8NRMfIrpzP?si=najivYi2S0eJoBKNW5BNVw&dl_branch=1
https://open.spotify.com/episode/2w07bgrd0kZLPUYJZu3Iyd?si=EVzvD6LRSPekE2K5d9MQEg&dl_branch=1
