USDA Releases September Bullish WASDE

The USDA released a bullish September WASDE (World Agricultural Supply & Demand Estimates) report on Monday.

Dan Bass is president of AgResource Company in Chicago.

“The USDA surprisingly reduced both corn and soybean acreage. Nine hundred thousand acres was the reduction in corn harvested acreage and 600,000 soybean acres. Both larger than expected. Then we U.S. soybean yield 50.5 bushels per acre, down from 51.9 last month and corn 172.5, down from 175.4 this month The weather in August has not been kind to U.S. farmers This has resulted in lower corn and soybean yields, as well as sorghum yields, leaving us with less supply We are looking at 200 million bushels as soybean ending stocks, with an average spot price of $14.35 [per bushel] at the farm. In the case of corn, we have ending stocks of 1.219 [billion bushels] with an average cash price of $6.75 [per bushel]. No real changes on wheat. Wheat ending stocks were left alone. Now, of course, we will have the stocks and final small grains report ahead of us on September 30, but the soybean and corn numbers are causing a pretty strong rally in Chicago here today. »

Basse notes that the corn harvest in the United States is just beginning.

“We’re just in the early days. We’re cutting Gulf Coast, Louisiana, Mississippi, Alabama. Yields are down, quality is an issue. We plan to move north in the southern Midwest by the end of this week Harvest won’t be further than, say, three to four percent on corn A few percentage points on beans, we’re just now starting to harvest.