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May WASDE better than expected for corn

May WASDE better than expected for corn

COVID-19 is still at play for crops in general, a commodity analyst said

By Diego Flammini
Staff Writer
Farms.com

The USDA’s May World Agricultural Supply and Demand Estimates (WASDE) report had some positives for corn growers.

The USDA projected corn ending stocks at 3.318 billion bushels, which came in lower than the trade average’s figures of 3.38 billion.

“Ending stocks for new crop corn were better than expected because the ending stocks were lower than expected, but still huge versus recent years” said Abhinesh Gopal, head of commodity research with Farms.com Risk Management. “The new crop corn production is estimated at a record 16 billion bushels.”

Soybean numbers also came in lower than expected.

U.S. soybean ending stocks, estimated at 580 million bushels, came in lower than the trade’s projections of 488 million bushels.

“Soybean ending stocks for the new crop were decent compared to expectations and recent years,” Gopal said.

Wheat figures, however, were higher than originally thought.

The U.S. estimated its total wheat production for 2020/21 at 1.866 billion bushels, which is more than original estimates of 1.847 billion bushels.

Multiple factors are still at play that could change crop numbers, Gopal said.

“The COVID-19 situation, and associated demand destruction and market dynamics are still up in the air and affecting new crop demand,” he said. “Especially in ethanol demand, animal feed demand and food demand. To that, we add the U.S. trade situation with China. The uncertainty never really left us, but now keeps intensifying.”

On Tuesday, China announced new tariff waivers for 79 U.S. imports.

These products include ores of rare earth metals, gold ores, silver ores and concentrates.

“There were no real specifics to ag, which is why it didn’t have any affect on the May WASDE,” Gopal said.


Trending Video

US “Flash Drought” Worst in 133-160 Years + Disease taking a Bite out of US 2025 Corn/Soybean Crops

Video: US “Flash Drought” Worst in 133-160 Years + Disease taking a Bite out of US 2025 Corn/Soybean Crops


A dry August and a “flash drought” in the ECB (Eastern Corn Belt) the driest top 10 to 15 years in 150 to 160 years (Ohio the driest in 133 years) plus disease is taking a bite out of the 2025 U.S. corn and soybean crops.
It's going to be an early harvest. This could be the start of the 89-year drought cycle that may have been delayed until 2026 as La Nina maybe returning.
The USDA September crop report is all about record corn ears and record soybean counts but the October USDA crop report will be about pod and ear weights.
Stats Canada reported higher forecasts for the 2025 Canadian Prairies all wheat and canola crops vs. last year based on satellite imagery but are they overestimating production?
The 2025 Great ON Yield Tour and Quebec crop tours are projecting corn and soybean crops below the 10-year average.
China's Vice Commerce Ministry Li Chenggang visits Washington this week as we continue to connect the dots is a positive sign towards a China/U.S. trade deal. But will U.S. farmers have a winter without China as they buy more soybeans from Uruguay/Argentina? U.S. Northern Plain soybean farmers are seeing red with flat prices at $8.97/bu!
U.S. corn exports on record pace up 99% vs. last year.
Fund short covering continues in corn futures bottom is in!