USDA Issues June World Supply and Demand Estimates

The USDA issued the June version of their World Supply and Demand Estimates (WASDE) at 11:00am this morning.

Corn:

Corn futures posted some gains prior to USDA’s report, but just after its release the market shifted 3 – 4 ½ cents lower, with old crop leading the way. Today’s reaction to the report was neutral however there just seems to be no good news right now for corn, as it continues to grind lower.  No revisions were made to the domestic balance sheet on corn for either crop year. World carryout numbers were near the upper end of expectations on some upward revisions to production. Overall, the numbers were within range.

Soybeans:

After trading firmer in overnight trade, Soybean futures were hit with new sellers in reaction to USDA’s Supply & Demand Report.  Beans ended 8 – 17 cents lower, old crop again taking the brunt of it.  The USDA increased soybean crush demand by 5 mbu to effectively lower the carryout by the same amount. No export revisions were made, but will likely occur in subsequent reports due to the pace of soybean exports this year. World numbers were edged slightly higher, but within the range of expectations. No revisions were made to the new crop balance sheet. Like corn, major balance sheet revisions will wait until the June 30^th reports.

For further information, contact:

Greg Mockenhaupt

Risk Management Consultant

Central Valley Ag – ProEdge

1007 County Road O

Oakland, NE 68045

Office: 402-685-5613

Cell: 402-380-9855

 
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