According to the USDA’s latest World Agricultural Supply and Demand Estimates (WASDE) report, season-average corn farm prices were unchanged from last month’s report and are expected to range between $3.35 and $3.95 per bushel. The season-average forecast for soybeans was also unchanged.
Read below for WASDE highlights or click here for the full report.
Projected U.S. feed grain ending stocks for 2015/16 are raised slightly this month. U.S. corn use for ethanol production in 2015/16 is projected 25 million bushels higher based on the stronger-than-expected pace of ethanol production during November as indicated by weekly data from the Energy Information Administration (EIA). EIA also raised its forecasts for 2015 and 2016 gasoline consumption in the December Short-term Energy Outlook.
Corn exports for 2015/16 are projected 50 million bushels lower, reflecting the slow pace of sales and shipments to date and higher projected exports for Brazil and Canada. U.S. corn ending stocks are projected 25 million bushels higher at 1,785 million bushels.
The projected range for the season-average corn farm price is unchanged at $3.35 to $3.95 per bushel, in line with prices reported to date and current futures price levels. The sorghum farm price range is lowered 10 cents on each end to $3.20 to $3.80 per bushel, reflecting the latest reported prices through October and continued weakness in interior cash sorghum bids.
Total U.S. oilseed production for 2015/16 is forecast at 117.7 million tons, down slightly due to a small reduction in cottonseed. Soybean supply and use projections for 2015/16 are unchanged from last month. Soybean ending stocks are unchanged at 465 million bushels which, if realized, would be the highest since 2006/07.
Soybean oil used for methyl ester is raised 200 million pounds for 2015/16 reflecting the recent Environmental Protection Agency announcement of the biodiesel mandate for 2016. The U.S. season-average soybean price for 2015/16 is forecast at $8.15 to $9.65 per bushel, unchanged from last month.
Soybean meal is forecast at $290 to $330 per short ton, down 10 dollars on both ends of the range. Soybean oil is forecast at 28.5 to 31.5 cents per pound, up 1 cent on both ends.
No changes are made to the U.S. all wheat balance sheet this month. By-class, the only changes are a 10-million-bushel increase in 2015/16 Hard Red Winter exports that is offset by a 10-million-reduction in Hard Red Spring exports. Global wheat supplies for 2015/16 are raised 2.3 million tons primarily on increased production but also higher beginning stocks.
World wheat production remains record high and is raised 1.9 million tons to 734.9 million. The primary production change is for Canada, which is raised 1.6 million tons to 27.6 million on a Statistics Canada report.