WASDE is ‘mildly bearish’ for corn and soybeans
The US Department of Agriculture (USDA) released its latest World Agricultural Supply and Demand Estimates (WASDE) publication today.
Looking at prospects for wheat, the US agency downgraded Canadian wheat production by 2Mt to 21Mt, compared to the 23Mt in the September WASDE. The drought impacted crop is continuing to be quantified, commented CRM Agri analysts.
US wheat production has been revised down as well, lowered to 44.79Mt from the 46.18Mt in the last report, as the USDA took into account the tighter September stocks data. “Overall, a mildly supportive WASDE as known production cuts are made,” said the UK based oilseed and grain market specialists.
Evaluating the data on corn, the analysts noted that both US beginning stocks and production estimates were increased, with beginning stocks increased to 31.41Mt and production jumping to 381.49Mt in the estimates, up nearly 0.5Mt month on month.
Chinese import projections are still projected at 26Mt.
Soybean story
Like with corn, the major changes in relation to the soybean outlook are to do with US supply, as beginning stocks are revised upwards due to greater confidence in domestic production, said the CRM Agri team.
Reflecting the September stocks data, starting stocks were revised upwards to 6.97Mt, and production increased to 121.06Mt, up from 119.04Mt, they reported.
The WASDE lowered foreign 2021/22 oilseed production by 2.4Mt tons to 497.4Mt on a reduction in soybean, sunflower seed, and rapeseed output.
Soybean production was lowered for Argentina, India, and the EU. Argentina’s production is reduced by 1Mt to 51Mt on lower harvested area.
Sunflower seed production is revised downwards for Ukraine and Russia on recent harvest results, while canola production for Canada is lowered 1Mt to 13Mt, reflecting reports by Statistics Canada.
