On the House floor on Wednesday, House Agriculture Committee Member Glenn Thompson (R., Pa.) stated that, “During the last Congress there was one area where both parties came together. It was an effort that made improvements to programs resulting in better use of each taxpayer dollar. It was on an effort that also achieved deficit reduction. That effort was the farm bill.
“Many of us are eager to hear the President’s plan to help the nation achieve fiscal balance during next week’s State of the Union. I encourage the President to elevate passage of a new farm bill to the forefront in his speech. It’s good policy. It’s one area where we can come together and start the path to fiscal balance. I encourage my leaders in the House to welcome this call.”
Today the World Agricultural Outlook Board (WAOB) released its monthly World Agricultural Supply and Demand Estimates (WASDE), which stated in part that, “U.S. feed grain ending stocks for 2012/13 are projected higher this month as lower expected exports outweigh an increase in projected domestic usage. Corn exports are projected 50 million bushels lower based on the sluggish pace of sales and shipments to date and prospects for more competition from Brazil. Corn use for ethanol production is unchanged, but corn use for sweeteners and starch is raised 20 million bushels, boosting projected food, seed, and industrial use. Projected corn ending stocks are raised 30 million bushels. The projected range for the season-average farm price for corn is lowered 20 cents at the midpoint and narrowed to $6.75 to $7.65 per bushel.”
The WAOB noted that, “U.S. soybean ending stocks for 2012/13 are projected at 125 million bushels, down 10 million from last month due to increased crush…Strong U.S. soybean meal exports during the first half of the marketing year are partly offsetting declining shipments from Argentina where crushing has slowed due to limited soybean supplies…Soybean oil used for methyl ester is unchanged this month despite relatively low use during the first quarter of the marketing year. Production and use are expected to expand in coming months due to the higher mandate for 2013.”
Today’s report added that, “The U.S. season-average soybean price range for 2012/13 is projected at $13.55 to $15.05 per bushel, up 5 cents on both ends of the range.”
With respect to wheat, today’s WASDE report stated that, “U.S. wheat ending stocks for 2012/13 are projected 25 million bushels lower this month with higher expected feed and residual disappearance. Feed and residual use is projected 25 million bushels higher as weaker cash prices relative to corn support opportunities for increased wheat use in livestock and poultry rations…The projected season- average farm price for wheat is narrowed 5 cents on both ends of the range to $7.70 to $8.10 per bushel.”
Charts containing the complete supply and demand variables for U.S. corn and soybeans are reproduced from today’s WASDE report (click on tables for full view).
And, a chart from today’s report highlighting U.S. wheat supply and demand variables is available below (click on table for full view).
Secretary of Agriculture Tom Vilsackspoke yesterday at the National Ethanol Conference in Las Vegas.
During the “Q and A” portion of his remarks, in response to a question regarding the Farm Bill, Sec. Vilsack elaborated on the sequester and budget issues (audio, (MP3- 4:07), FarmPolicy.comtranscript) and noted that, “Sequester could have an impact on the farm bill, because in order to avoid sequester, some folks may say, well, you know what, here’s what we’re going to do. We’re going to do some deficit reduction. We’re going to take some money from those farm programs and we’ll use it for deficit reduction now, not in the context of a new farm bill, but just to avoid sequester.
“But when they do that, it makes it more difficult to write that farm bill, because if you’re going to do away with direct payments and you’re going to try to save the $48 billion that direct payments represents, and you’re going to try to plow some of that back into a new system that takes care of rice producers, and cotton producers, and soybean producers, and corn producers, and wheat producers, etc., but yet you also have to have some for deficit reduction, the smaller that pie is, the more difficult it is to write those programs.”