WASDE points to lower prices

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

USDA's July World Agricultural Supply & Demand Estimates (WASDE) report kept the projected 2014 U.S. corn yield unchanged from last month at a record 165.3 bushel/acre. A 500,000-acre reduction in U.S. harvested corn acres puts the projected size of the 2014 U.S. corn crop at 13.860 billion bushels, which is 75 million bushels smaller than last year's record crop.

Ending stocks for the 2014/2015 crop year increased by 75 million bushels, as a decrease in the crop size was offset by reductions in Feed and Residual usage. U.S. corn ending stocks are projected to be 1.801 billion bushels, which equates to a stock-to-usage ratio of 13.5%. World corn carryover from the 2013/2014 crop year was increased by 4.37 million metric tons (mmt) to 173.42 (mmt). Global corn production was lowered slightly to 980.96 mmt. Overall, world corn ending stocks increased from 182.65 mmt to 188.05 mmt.

The projected range for the 2014/15 season-average corn price (paid at the farm level) was lowered 20¢ on each end, to $3.65 to $4.35 per bushel.

U.S. soybean yield was left unchanged at a record 45.2 bushel/acre. The 3.6 million acre increase in harvested acres from last month increases U.S. soybean production to 3.8 billion bushels from 3.635 billion bushels last month. 2013/2014 soybean ending stocks increased by 15 million bushels to 140 million bushels as a 45 million bushel increase in crush and export demand was offset by a 69 million bushel negative residual number (this negative residual number will be accounted for on a future report). For the 2014/2015 crop year, soybean demand was increased in the crush and export categories by 90 million bushels, but an increase in carryover and the projected crop size netted a 90 million bushel increase in 2014/2015 ending stocks to 415 million bushels (largest since 2006). The projected soybean stocks-to-usage ratio is at 11.7%. On the world front, soybean production was increased by 4.8 mmt to 304.79 mmt. Slight increases in global demand mean ending stocks increased by 2.43 mmt to 85.31 mmt.

Prices for soybeans and products for 2014/15 are all reduced. The U.S. season-average soybean price was projected at $9.50 to $11.50 per bushel, down 25¢ on both ends of the range. Soybean meal prices are projected at $350 to $390 per short ton, down $5 on both ends.

Source: Matt Mattke, Commodity Consultant Team Lead for Stewart-Peterson. Matt can be reached at mmattke@stewart-peterson.com

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Comments (0) Leave a comment 

e-Mail (required)


characters left

Blend and Bulk Tower Systems

Waconia Towers provide speed, efficiency and reliability that only gravity-fed systems can offer. Towers are available with up to 300 ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form