FarmPolicy

August 21, 2014

February World Agricultural Supply and Demand Estimates (WASDE)

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).

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