Corn and soy prices down after Wasde report

15-10-2021 | |
Photo: Canva
Photo: Canva

Prices of corn and soy on the Chicago futures market have fallen following the publication of the October issue of the Wasde report. Wheat recorded a small plus.

Corn production

The estimate of corn production in the United States is slightly higher than expected in the new monthly report from the US Department of Agriculture. Production is now estimated at 381.5 million tons. That is only 0.15% more than the forecast published in September.

Corn consumption

A larger difference can be found in corn consumption; compared to September this has been reduced to just under 312 million tons. As a result, stocks will increase by 2.3 million tons to 38.1 million tons at the end of the season.

Soybean: Export & consumption remain unchanged

Soybean production in the United States increased by 1.7% to 121.1 million tons. The estimates for consumption and export opportunities have remained unchanged compared to September. As a result, stocks in the US increase by 3.7 million tons to 8.7 million tons. In addition, expectations for consumption in Argentina have been slightly lowered and slightly higher stocks in China are expected at the start of this season.

Wheat harvest slight rise

The adjustments in wheat are in line with market expectations. That is why the price changes there after publication are small. For example, global wheat production for the 2021-22 harvest has been reduced by 0.6% to 776 million tons compared to the September estimate. This means that the wheat harvest in the world is only slightly larger than last year. The forecast for wheat consumption is also slightly lower, but less than production. As a result, stocks will continue to decline this year.

John Ramaker Commodities market editor, Boerderij