USDA’s June World Agricultural Supply and Demand Estimates were released Tuesday and the corn market reacted favorably to a cut in corn planted acres of 3 million. Analysts say that could be just the start of acreage cuts. Also the average of yield estimates was over 172 bushels per acre, but USDA came in at 166. USDA stuck with its previous estimated soybean yield of 49.5 bushels per acre, and the production estimate of 4.15 billion bushels was also left untouched.
Corn, Bean, and Wheat Prices are up in the USDA June Estimates out Tuesday. What is the main factor behind the agency’s month-over-month price adjustment upward for major commodity crops? Reduced ending stocks in USDA’s latest supply and demand report is translated into price bumps. The season ending average price estimate for corn rose 50 cents in June to $3.80 a bushel, thanks to a month over month adjustment down of ending stocks, which if realized would be at the lowest levels in six years.
Soybean prices, thanks to a combination of lower ending stocks for May plus the higher corn price, increased 15 cents from the previous month, with the season ending average price estimate at $8.25 a bushel. The latest price estimate for wheat comes in at $5.10 a bushel, up from the previous month. Again, that is due to lower ending stocks, despite a less than one percent increase in wheat production from May.
USDA wheat production was higher than trade estimates at 1.903 billion bushels.