The World Agriculture Supply and Demand Estimates (WASDE) released by the World Board Tuesday didn’t move the needle on corn and soybeans. However, it did provide bullish news for wheat and cotton, according to Farm Journal economist and AgriTalk Radio host Chip Flory.
“So we got a 40 million bu. cut in the carry over projection on wheat,” Flory says in an interview with AgDay TV’s Clinton Griffiths. “I think that's pretty good news for a market that was expecting very little change on the supply and demand tables at all.”
The December WASDE report cut wheat import projections by 15 million bu. and raised exports by 25 million bu.
On the cotton side, the bullish news was all on the production side from weather troubles this growing season.
“They took 24 pounds per acre off the average yield, took about 600,000 bales off of the crop, which took the carry over down to 5.5 million,” Flory says. “So, cotton got a friendly supply side report there as well. didn't get any changes on the demand side for cotton.”
While there was no movement on corn and soybeans in the December WASDE, Flory says there’s still a lot left to the story for the 2019 growing season.
“You know, the corn that's in the field right now is going to show up as Dec. 1 on-farm corn stocks, and on-farm bean stocks when we get to the January annual production summary quarterly grain stocks report,” Flory explains. “We’re not done trying to figure out exactly what this 2019 crop is going to do to our supply and demand going forward. We've got a lot of questions that still need to be answered.”
Watch the full WASDE analysis with Chip Flory and Clinton Griffiths below.