A week after USDA released its bombshell Prospective Plantings report, revealing farmers’ intentions to plant fewer-than-expected corn and soybean acres this year, USDA’s April World Agricultural Supply and Demand Estimates (WASDE) also sparked some market momentum in corn right after the report was released, but seemed to disappoint for soybeans.
Really like the adjustments USDA made to domestic corn demand. Reasonable and softens the impact of waiting to do everything in May. Those will be supportive of corn markets today.
— Ben Brown (@BenBrownMU) April 9, 2021
USDA revised its monthly corn outlook by lowering ending stocks. USDA says the adjustment is based on increased needs for feed, a bump in ethanol, as well as an increase in corn exports.
USDA made the following adjustments to corn:
- Increased feed/residual use by 50 million bushels.
- Raised corn used for ethanol by 25 million bushels.
- Increased corn exports by 75 million bushels, based on the large export inspection data in March that showed a new record, beating November of 1989.
USDA reported that #corn shipments to China in the week ending April 1 were 22.8 million bushels. They need to average 25.8 million the rest of the marketing year to ship currently known sales on the books to China. Physically possible IF China can turn enough ship cycles. #oatt
— Arlan Suderman (@ArlanFF101) April 8, 2021
In the April report, WASDE’s corn stocks figures came in below trade expectations. The agency pegged corn stocks at 1.352 billion bushels, down from 1.502 billion bushels last month.
Related Stories:
Where did the Acres Go? A State-by-State Breakdown of USDA’s Prospective Plantings Report
