After two months of delays because of the government shutdown, the World Agricultural Supply and Demand Estimates (WASDE) report was released.
The U.S. corn outlook looks to have lower imports, production, seed, feed, and ending stocks. Corn production is estimated at 14.42 billion bushels, down 206 million on yield reduction. Yield is estimated at 176.4 bushels per acre. Corn stocks are lowered by 46 million bushels to 1.73 billion bushels. Total world production is estimated at 1.099 billion metric tons.
The report had few surprises for the markets and all of them in corn according to Market Analyst Alan Brugler with Brugler Marketing and Management, "USDA cut the corn yield, which is 2.5 bushels from their previous estimate. And then they cut the feed use for corn by 175 million bushels so even though we've got record number of grain-consuming animal units they are just saying we're feeding them other stuff."
U.S. soybean crop projection looks to have lower production, ending stocks, supply, and exports. The USDA estimates production at 4.544 million bushels, down 56 million. The yield is estimated at 51.6 bushels per acre, down half a bushel. Ending stocks are projected at 910 million bushels down 45 million from the last forecast. Lower supplies are offset by a 25 million bushel reduction in exports. World soybean production is estimated at 369 million metric tons.
Ultimately the markets took the report in stride with most of the number expected according to Brugler, "We were in trading ranges waiting for USDA to give us something earth shattering on Friday and then most of the USDA numbers were, shall we say, less than earth shattering."