Domestic Demand to Pressure U.S. Corn, Soy, Wheat Stocks as Exports Fade

May 14, 2021

By Mark Weinraub

Strong domestic demand will keep U.S. stockpiles of corn and soybeans near seven-year lows even after farmers harvest the crops they are currently seeding, the government said on Wednesday.

The stocks estimates were in line with market expectations but the report showed that the recent gains in ag commodities, highlighted by soybean futures’ rally to a nearly nine-year high this week, are likely to continue.

“You could make the argument that the market has been undervalued for the last several months,” said Joe Vaclavik, president of Standard Grain.

The U.S. Agriculture Department’s monthly World Agricultural Supply and Demand Estimates report also showed that rising demand from the feed sector will push wheat stockpiles to a seven-year low by June 2022 as livestock and poultry producers scramble to find cheaper proteins for their animals’ diets.

Exports were seen falling for corn, soy and wheat versus the prior crop year.

USDA projected that U.S. corn stocks would stand at 1.507 billion bushels by Sept. 1, 2022, up from 1.257 billion bushels expected on Sept. 1, 2021.

Soybean stocks in September 2022 were seen rising just 20 million bushels from 120 million bushels forecast for 2021, according to USDA’s monthly World Agricultural Supply and Demand Estimates report.

The report projected a 4.5% increases in corn usage by ethanol producers in 2021/22 as more of the corn-based fuel is needed for drivers returning to the roads as the COVID-19 pandemic eases. For soybeans, demand from crushers that process soybeans into soymeal for animal feed, was seen up 35 million bushels to 2.225 billion.

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Video: Alberta Honey: A Day at Molenkamp Honey Farms

When was the last time you read the label on your honey?

We spent a day at Molenkamp Honey Farms with Michael Molenkamp, who has been keeping bees for 17 seasons and runs three to four thousand hives. In mid-September, he was finishing treatments and getting his bees ready for winter, and he walked us through how Alberta honey gets made.

Alberta has just 150 commercial beekeepers running 300,000 colonies, and together they produce 40% of Canada’s honey. Long summer days and golden canola fields give Alberta honey a light flavour that’s hard to match anywhere else.

Molenkamp calls Alberta beekeepers some of the most resilient farmers he knows. There’s plenty of Alberta honey to go around, but a lot on our shelves isn’t from here, so his ask is simple. Give the label a second look and choose honey made by Alberta beekeepers, or buy straight from a beekeeper near you.