MarketsFarm — Very few major changes were made in the latest edition of the world agriculture supply and demand estimates (WASDE) published Friday by the U.S. Department of Agriculture.
For the 2023-24 crop year, USDA pegged total domestic wheat production at 1.665 billion bushels, slightly higher than the 1.659 billion in the department’s May estimates. USDA said higher hard red winter wheat production will exceed declines in soft red winter and white winter wheats.
Domestic wheat use and exports were held at 1.112 billion and 725 million bushels respectively. But ending stocks nudged up six million bushels to 562 million, somewhat below the average trade estimate of 569 million and well under the 2022/23 carryover of 598 million bushels.
Read Also
U.S. livestock: Feeder cattle extend rally to new highs
Chicago Mercantile Exchange feeder cattle futures extended gains to record highs on Wednesday while live cattle futures set a contract high before pulling back.
The June report held 2023-24 U.S. corn production at May’s 15.265 billion bushels, domestic use at 12.385 billion, and exports at 2.1 billion. Ending stocks were raised to 2.257 billion bushels from last month’s 2.222 billion. That was almost a bullseye for the average trade guess, while significantly higher than the 2022-23 carryover of 1.452 billion bushels.
For soybeans, the June WASDE maintained production from May at 4.51 billion bushels with total use also remaining at 4.411 billion and exports at 1.975 billion. As for ending stocks, USDA matched market expectations of 350 million bushels, which is up from May’s 335 million. As with corn, soybean ending stocks are a fair bit higher than in 2022-23’s 230 million bushels.
In estimating South American soybean production for 2022-23, USDA cut two million tonnes from its call for Argentina at 25 million and Brazil was nudged up one million tonnes to 156 million. However, USDA was optimistic when it came to 2023-24 output, placing Argentina at 48 million tonnes and with Brazil accounting for nearly 40 per cent of global production at a whopping 163 million tonnes.
As for 2022-23 South American corn production, USDA cut Argentina by two million tonnes at 35 million and raised Brazil by two million at 132 million. The department’s outlook for 2023-24 put Argentina at 54 million tonnes and Brazil at 129 million.
Among the world’s wheat producers in 2023-24, USDA forecast the European Union to harvest 140.5 million tonnes, an increase of 1.5 million from the May estimate. Russia is to reap 85 million tonnes, up from last month’s 81.5 million, and Ukraine is raised one million tonnes at 17.5 million. The department kept Canada at 37 million tonnes and Australia at 29 million.
In USDA’s monthly oilseed report, it pegged global canola/rapeseed production for 2023-24 at 87.2 million tonnes, of which 20.3 million is to be grown in Canada. The EU is projected to lead the world at 21 million tonnes.
Prior to the July WASDE, the department will release its survey-based acreage report on June 30.
