January 24, 2020

WASDE and the Stimulus (Markets), Chairman Peterson- CFTC; Sec. Vilsack; Farm Bill; and Biofuels

WASDE and the Stimulus (Markets)

Yesterday, the World Agricultural Outlook Board (WAOB) released its monthly World Agricultural Supply and Demand Estimates (WASDE) report.

The report indicated that, “There are no changes this month to the U.S. corn balance sheet… The projected season-average farm price range for corn is narrowed 10 cents on each end to $3.65 to $4.15 per bushel.”

Globally however, the WAOB stated that, “World corn production for 2008/09 is lowered 4.6 million tons. Argentina production is lowered 3.0 million tons as continued drought and heat during late January further reduced prospects for yields and harvested area in key central growing areas. Brazil production is lowered 2.0 million tons reflecting a return to dryness in late January that limited soil moisture during grain fill in drought-affected southern growing areas. Corn production is also lowered 0.8 million tons in adjacent Paraguay which experienced similar weather problems this season. Corn production is lowered 0.5 million tons for India as lower yields more than offset an increase in harvested area. Production is lowered 0.2 million tons for Russia, but increased 1.4 million tons for Ukraine on the latest government indications.”