The July WASDE report was projected to be a friendly one, and it turned out to be even more friendly than expected. A significant cut to corn supplies and tightened supplies for soybeans and wheat indicate that there isn’t much leeway for weather issues in the back half of the growing season. Allendale commodity broker Greg McBride said the overall reduction to the old crop corn stocks was larger than expected.
McBride said there was virtually no change to the corn production numbers.
The wheat markets saw the largest gains to end Friday despite seeing smaller changes in the WASDE report. McBride said that was due to the shutdown of a strait between Crimea and Russia.
On the soybean side of the report, the USDA raised production by 40 million bushels to 4.475 billion bushels, spurred by higher harvested area from the June 30 Acreage report. While the USDA did raise soybean supplies by 30 million bushels, they also increased soybean exports by the same amount, offsetting the supplies and leaving ending stocks at a tight 310 million bushels. McBride said this means the weather will be a huge focus for the grain markets moving forward.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
