WASDE Recap
The WASDE produced no noticeable surprises and largely fell within market expectations.
USDA raised global supplies for corn, soybeans, and wheat.
US corn and soybean yields were pushed higher, at 176.3 bushels per acre for corn and 50.6 for beans.
US corn planted and harvested area was raised as anticipated.
Brazil’s 2020/21 winter corn crop was cut and US corn exports were raised.
US soybean exports were raised, but crush was cut.
USDA sees China bringing in 26 million tonnes of corn and 101 million tonnes of soybeans (unchanged versus August numbers), despite a boost to its corn production and stocks outlook.
Global wheat production was raised, primarily coming from China, Australia, and India.
Wheat feed use and exports inched higher, but ending stocks are still projected to grow.
FBN’s Take On What It Means: While there were no major surprises, the key takeaway appears to be that the USDA sees continued demand for US corn and soybeans. The market will be switching its focus to the upcoming September Stocks Report and Small Grains Summary released on September 30.
US Weekly Export Sales as of September 2
The new crop year for corn and soybeans began on September 1.
Corn sales came in at 36 million bushels, down 10 million from the previous week.
New crop corn sales now stand at 958 million bushels, a record for this early in a marketing year, and should continue strong.
Bean sales were at 54 million bushels. China led with 28 million.
Wheat sales rose to 14 million bushels, the highest since late July, but the US remains uncompetitive in most world markets.
Sorghum sales came in at 5 million bushels, which was up from the previous week’s total.
Cotton sales were solid at 453,000 running bales.
FBN’s Take On What It Means: The lingering damage from Hurricane Ida tempered export volumes in the final week of the crop year, but corn and soybean sales continued strong. Corn is off to a record start, and flash sales of soybeans to China have been occurring almost daily. Wheat continues to lag and shows little promise to change.
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