As was expected, Tuesday’s WASDE report, the World Ag Supply and Demand Estimates, did not present a lot of changes. Brooks Shaffer, market advisor with Palmetto Grain in Ridgeland, South Carolina, says USDA played it safe with this report.
“They do not make changes on the supply side. But there have we were ahead of pace on exports and ethanol production, on corn and on domestic consumption, domestic crush on beans. So some people had, had thought that maybe they would trim those carry out numbers, increasing the demand on that but, but USDA left all that alone. They did raise the average farm price on corn by 10 cents. You know, we’ve seen the price trending up where the balance sheet is tightening up. So they did make that change on the domestic side.”
USDA did drop corn production numbers in Argentina and Brazil, but no change in Brazilian soybean numbers. Schaffer says this report adjusted global corn and soybean production down based on South American weather.
“Corn is lower from the last from the January report, and a pretty good bit lower than last year. The corn balance sheet is tightening up in the world, and that that’s reflected in the price we’ve seen this price rally and soybeans the world carry out is down a little bit from the last report, but we’re up a pretty good bit from from last year. So kind of a mixed bag there where we’re tightening up a little bit, but we’re still building year over year.”
The bean carry out was lowered, but Schaffer says not enough to move the market.
“The world carryout is down a little bit from the last report, but we’re up a pretty good bit from last year. So kind of a mixed bag there, where we’re tightening up a little bit, but we’re still building year over year. So the market’s not going to react. The market hadn’t felt the need to react there.”
Wheat didn’t bounce either way, either.
“Looking at wheat on the domestic side, they did raise domestic usage, and so they lowered domestic wheat carry out, which is a good thing, a bullish thing for the market, because wheat has really struggled the last few weeks. World carry out is down a little bit too, but mainly in the wheat. The market didn’t react a whole lot to that today.”