Last week’s WASDE Report provided both production changes as well as demand changes, but they may have been disappointing for some who were hoping for good news. Rich Nelson of Allendale says the corn number were disappointing.
“For our corn side of things, we saw yield declines in this case just 0.7 bushels, 186 bushels per acre across the board, so a smaller than expected yield decline. In this case, stocks about 2.15 so in terms of an adequate stock number, this is certainly it. USDA made no changes for South America production or China as well. So corn a little disappointing.”
USDA lowered soybean production slightly by half a bushel per acre, but it was the export numbers that were unexpected.
“Now maybe surprising the sum, but we did see USD lower exports by 50 million bushels. Keep in mind, even with the China trade deal, is probably not yet enough to justify that viewpoint.”
Nelson says this WASDE, the first report issued by USDA since the government shutdown began in September, was a letdown across the board for crop farmers.
“Number one, exports were not raised here for the US side. Number two, and a little more disappointing, they really raised a lot of the foreign competitors. In fact, foreign competition up 11 million metric tons just on this report alone. So disappointing all around for corn, soybeans and wheat.”