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June WASDE delivers few surprises, analyst says
A grains and oil seeds analyst says the latest supply and demand report didn’t include any surprises.
Bree Baatz with Terrain says this month’s update drew less attention than others. “USDA essentially did a copy and paste and that tends to happen seasonally with the June report being uneventful. The May WASDE is really the kind of first look at new crop. That tends to be a bigger market mover.”
She tells Brownfield USDA once again lowered winter wheat production, potentially providing some price support, but, “Because the world has record amounts of wheat supplies, there’s really not going to be much of a price impact for U.S. producers to the upside.”
USDA projects the crop at 1.03 billion bushels, 2 percent below May’s report.
Baatz says the report also included an increase in Argentina’s old-crop soybean production. “That’s going to lean a little bearish on the export demand for soybean as we move ahead. I don’t think any of that is a surprise. We’ve seen news headlines from private groups that everybody’s expecting South American old crop supplies to increase.”
And, she says, there were increases to old crop corn production for Brazil and Argentina.
The USDA increased U.S. corn ending stocks by 3 million bushels and left soybean ending stocks unchanged. The next round of estimates is out July 10th.
Bree Baatz:
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