On Tuesday, the USDA released the June WASDE report, which offered a few key updates to the global corn crop.
Today’s report stood out thanks to the decline in both old crop and new crop ending stocks. We also received a few surprises down in South America.
Here’s our breakdown of the numbers.
The USDA’s June WASDE report showed the market that American farmers will produce 14.04 Billion bushels of corn in 2018. This figure was the same as what the USDA reported in May 2018.
Compared to the five-year average of 13.51 Billion bushels, 2018/19 American corn production is 4% higher.
From a demand perspective, we can just look at ending stocks to get an idea of where we sit.
For American corn, 2018/19 carryout is expected to come in at 1.58 Billion bushels. This figure was decreased by 105 million bushels than the figure reported last month. Average trade expectations before the report were 1.66 Billion bushels.
From a global carryout perspective, 2017/18 corn stocks are pegged at 192.7 MMT. That figure is 600,000 metric tonnes lower than the average projection ahead of the report.
The agency says that 2018/19 ending stocks will come in at 154.69 million tonnes. This is 1.82% off from the pre-report average guesstimate of 157.56 million tonnes.
A few other key points from the report:
The USDA said that Argentina’s soybean crop would come in at 37 MMT. That figure was a 2 MMT drop from the May report. The average trade estimate was 37.8 MMT, meaning that Argentina’s crop is in worse shape than the market was previously thinking.
The USDA increased the projection of corn used in ethanol by 50 million bushels for 2018/19. That figure offsets a 50-million bushel reduction in sorghum use for food, seed, and industrials.
The USDA slashed Russian corn production thanks to a decline in the nation’s acreage.
To get a view of all the major numbers in today’s June 2018 WASDE report, read our live update on the FarmLead Insights page.