By Andi Anderson
The December World Agricultural Supply and Demand Estimates (WASDE) report was released on Friday, and while it wasn't expected to be a major market mover, it ended up being just that. The report contained few surprises, but the reaction from the market was clearly bearish, with all three major grain markets falling after the release.
Corn:
- The only change in the U.S. corn balance sheet was a 25 million bushel increase in exports, bringing the total to 2.1 billion bushels.
- World corn ending stocks rose by a modest 200,000 metric tons to 315.2 million metric tons.
- March corn futures fell 2 1/2 cents to $4.85 1/2. Soybeans:
- The U.S. soybean balance sheet was left unchanged, with ending stocks remaining at a tight 245 million bushels.
- Global soybean production was reduced by a modest 1.5 million metric tons, with the drop in new-crop Brazilian production accounting for much of that.
- World soybean ending stocks fell by just 300,000 metric tons to 114.2 million metric tons.
- January soybean futures closed down 7 3/4 cents to $13.04. Wheat:
- USDA raised soft red wheat exports by 30 million bushels and cut white wheat sales by 5 million bushels, leading to a 25 million bushel cut in U.S. ending stocks.
- World wheat ending stocks fell by just 500,000 metric tons to 258.2 million metric tons, the lowest since 2015-16.
- Kansas City wheat futures closed down 6 1/2 cents to $6.61. The December WASDE report was largely neutral, with few major changes to the global supply and demand picture. However, the market reacted negatively to the report, with all three major grain markets falling. This suggests that traders remain concerned about the potential for further weakness in grain prices in the coming months.
Photo Credit: pexels-energepiccom.
Categories: Iowa, Business