Little Change for Corn and Soybeans
Chad Hart , ISU Extension Grain Marketing Specialist, provides a summary of the latest crop report from USDA.
USDA released an update of their World Ag. Supply and Demand Estimates report this morning. But the update changed little in the corn and soybean outlook. Corn estimates were unchanged, with 2010/11 ending stocks projected at 675 million bushels and the midpoint of the season-average price range at $5.40 per bushel. Soybeans had a small adjustment to seed demand that was offset by a reduction in residual demand. So 2010/11 ending stocks remain at 140 million bushels, but the midpoint of the season-average price was lowered to $11.60 per bushel. Wheat 2010/11 ending stocks rose 25 million bushels, based on a reduced export outlook. This could open up more wheat in domestic feed channels to compete with corn.
Looking at the world situation, corn production in 2010/11 was reduced by 0.5 million metric tons with the bigger shifts coming from Mexico (down 2 million tons) and Brazil (up 2 million tons). Corn exports to the European Union and Mexico for the 2010/11 crop year are projected to increase by 2.1 million tons. World soybean production was increased by 2.3 million metric tons, with the bulk of that increase coming from Brazil (up 1.5 million tons) and China (up 0.8 million tons). Argentine production was held steady, but Argentine exports were lowered by 0.6 million tons.
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