Reuters writer Mark Weinraub reported on Friday that, “U.S. wheat supplies ballooned to the biggest in nearly 30 years during the summer months, topping expectations, as a 12 percent jump in production and weak demand on the export market filled storage bins, the government said on Friday.
“The U.S. Agriculture Department also reported corn and soybean stocks as of Sept. 1 at multi-year highs despite record usage of both commodities during the June, July and August time period.”
The article noted that, “Corn stocks were 1.738 billion bushels, the biggest since 2006, and soybean stocks were at a five-year high of 197 million bushels. Analysts were expecting corn stocks of 1.754 billion bushels and soybean stocks of 201 million bushels.”
Also on Friday, in its Small Grains annual summary, USDA indicated that, “All wheat production totaled 2.31 billion bushels in 2016, up 12 percent from the revised 2015 total of 2.06 billion bushels. Area harvested for grain totaled 43.9 million acres, down 7 percent from the previous year. The United States yield is estimated at 52.6 bushels per acre, up 9 bushels from the previous year and represents a new record high. The levels of production and changes from 2015 by type are winter wheat, 1.67 billion bushels, up 22 percent; other spring wheat, 534 million bushels, down 11 percent; and Durum wheat, 104 million bushels, up 24 percent.”
With respect to prices, USDA noted in its monthly Agricultural Prices report late last week that, “The August price for all wheat, at $3.67 per bushel, is down 8 cents from July and $1.17 below August 2015.”
The Ag Prices report added that, “The corn price, at $3.21 per bushel, is down 39 cents from last month and down 47 cents from August 2015.”
And regarding soybean prices, USDA stated that, “The soybean price, at $9.93 per bushel, decreased 27 cents from July but is 22 cents above August a year earlier.
And from the livestock sector, USDA indicated on Friday in its Quarterly Hogs and Pigs report that, “United States inventory of all hogs and pigs on September 1, 2016 was 70.9 million head. This was up 2 percent from September 1, 2015, and up 4 percent from June 1, 2016.”