On Monday, Aug. 12, USDA released its monthly Crop Production and World Agricultural Supply and Demand Estimates (WASDE). This year’s August reports will include more information than ever before, including the resurvey announced in June, satellite data and, for the first time ever, FSA acreage certification information. The Risk Management Agency (RMA) also released its initial prevent plant acreage results.
These reports held several surprises and jolted the markets. Find full coverage and analysis below.
Dissecting USDA’s Planted Acreage Numbers
One of the biggest questions farmers had following Monday’s USDA reports was the discrepancy between the planted acreage released by the National Ag Statistics Service (NASS) and the prevented plant acres released by the Farm Service Agency (FSA).
Did USDA’s June Yield Cut Raise Prices Too Fast and Kill Demand?
Yesterday’s reports did nothing to add clarity to an already confusing season. “We have so many questions that aren’t getting answered,” says Sam Hudson, with Corn Belt Marketing. “Now the fear is it’s a race to the bottom to see if we can find demand.”
Farmers, Analysts Question USDA Reports
Following Monday’s onslaught of USDA data, many in the ag community walked away with more questions than answers. Lance Honig, crops branch chief of USDA National Ag Statistics Service, hosted #statchat on Monday to help clear up some questions.
Jerry Gulke: USDA Reports Create More Questions than Answers
Following the release of the reports, corn prices sank by about 25¢ and soybean prices by 11¢. The price reaction was due to several surprises in the report, says Jerry Gulke, president of the Gulke Group.
Chip Flory Dissects the Aug. 12 USDA Reports
Heading into the Aug. 12 USDA reports, most analysts and farmers predicted a surprise or two. This monthly round of Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports did not disappoint.
Pro Farmer: USDA Rocks Markets with Corn Estimates
USDA’s initial corn crop estimate came in 708 million bu. above what traders expected and 26 million bu. higher than the July projection.
I need to be careful about what I wish for by Dan Hueber
My mother always warned me to be careful in what you wish for as if or when you do receive it, it may not be really what you want. I guess I should have heeded that warning as it pertained to the August crop estimates as instead of producing clarity, the USDA has just muddied the waters for many in the trade, and most specifically for the corn market.
Morning Market Audio 8/13/19 by Joe Vaclavik
USDA shocked the trade yesterday with its higher-than-expected corn production number.
Farmers File Prevent Plant on More Than 19 Million Acres
The initial release shows farmers were unable to plant more than 19.4 million acres in 2019.
USDA: Corn, Soybean Production Down From 2018
Corn production is down 4% from 2018, with soybean production down 19%. Meanwhile, cotton production is up 23% from last year.
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