On Friday, USDA released the April World Agricultural Supply and Demand Estimates (WASDE) report at 11am CST. There were not many changes or surprises in the report. We saw soybeans, meal and oil strong on the day with sharp gains while wheat was also strong on the day. New highs were set in spring wheat and in corn as well. The corn market was up moderately but the weakest of the three grains.
We did see mixed action in cattle and hogs with some spread trade evident on Friday. The WASDE report shared a supportive outlook for the beef sector as beef production grew, exports held steady, and fourth quarter prices gained $1.00. The hog complex wasn’t caught off guard by anything in Friday’s WASDE report as it noted stronger quarterly prices for the second, third and fourth quarters of the year; but note higher imports and lower exports.
US ending stocks for corn were unchanged at 1.440 billion bushels while soybeans were lowered to 0.260 b/bu on increased exports. US wheat ending stocks were raised to 0.678 b/bu on reduced exports. World wheat ending stocks came in below expectations while corn was above and soybeans just below expectations. South American numbers came in with surprisingly no changes to Argentina crops while Brazil’s soybean crop was lowered to 125 mmt, which is what the trade expected.
Farm and Ranch Director Jesse Allen has our closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
Also, more analysis of the trade and the WASDE report with Jesse Allen and Ted Seifried of Zaner Ag Hedge on Market Talk: