USDA Updates Wheat and Corn Balance Sheets

USDA has updated their global and US wheat production, supply and demand estimates. World Agricultural Outlook Board Chairman, Mark Jekanowski.

“The key takeaways are, global wheat production was lowered 1.8 million tons, but we're still looking at a global production of just about 793 million tons. That would be record large production, even despite the small reduction we made this month.”

As for corn, he says that Mexico and other non US Northern Hemisphere countries contributed to adjustments in the USDA December, global corn production forecast.

Mexico, we reduced our production forecast by 800,000 tons, mainly during up production forecasts based on recent harvest results. So European Union down 800,000 tons. Ukraine was raised 300,000 tons.”

The corn balance sheet reflects a reduction in Brazilian corn production, resulting in a projected increase in US corn exports.

“This month, we raised our US corn export forecast by 150 million bushels.”

Jekanowski says that the season ending average price forecast for wheat is that $5.60 a bushel and for corn, it is at $4.10 a bushel. With this Line on Agriculture Report, I'm Lorrie Boyer.