The latest World Agricultural Supply and Demand Report released Thursday by USDA. Here are some of the highlights:
Interestingly enough given current events, USDA increased expected corn ethanol use by 50 million bushels to 5.575 billion bushels. At the same time, exports were increased by 175 million bushels to 2.225 billion bushels based on price competitiveness, record high outstanding sales and reduced exports by Argentina.
Combined they in a lowering of new crop ending stocks by 225 million bushels to 2.127 billion bushels, which analyst Sue Martin of Ag and Investment Services says fell below the pre-report analysts' estimates.
She adds that even though USDA projected Brazil's corn crop at 94.5 mmt, down .5 mmt from the February estimate, that estimate is significantly higher than Brazil's agricultural agency CONAB.
The average farm-gate price was bumped up five cents a bushel to $3.35 a bushel.
First the good news. USDA increased domestic soybean crush by 10 million metric tons. But for the second report in a row, lowered exports for the 2017-18 soybean crop by 25 million bushels this month due to increased production and exports by Brazil.
Together the changes bump up the forecasted ending stocks to 555 million bushels, which, according to Martin is higher than the pre-report analysts' average.
In South America, Argentina's crop was lowered 7 mmt to 47 mmt due to drought while USDA bumped up Brazil's expected soybean crop by 1 mmt to 113 mmt, so an overall smaller crop projected there.
The midpoint price for soybeans remains at $9.30 a bushels for the 2017-18 crop.
Exports were lowered 25 million bushels to 925 million bushels meaning higher ending stocks by the same amount to 1.034 billion bushels.
The average wheat price for the 2017-18 crop was bumped up 5 cents to $4.65 a bushel.