The Surprise in the August WASDE

USDA has released its September World Agricultural Supply and Demand Estimates report, which, while not as dramatic as August, still brought some notable changes. Crossroads Cooperation Manager Bryan Irey, on what the numbers could mean moving forward.

“I think the primary change on the corn side, which seems to be the major focus of the trade in general, was lowering the yield by a small amount when it was all said and done. I think the bigger surprise was the fact that they increased acres once again, which we had started to hear some rumors late in the week that satellite imagery was showing a few more acres than what was originally anticipated. So that ended up coming to fruition.”

Irey says the big surprise came on the back of the report with corn exports raised by another 100 million bushels, an adjustment made to keep carry out right at the 2 billion bushel mark,

“The USDA now has corn exports at 2.975 billion bushels, which would be by far a record. And I think what is even a little more disturbing is in the August report, there was pretty much an increase. Well, it wasn't pretty much. There was an increase of 640 million bushels in demand. This now makes 740 million bushels of increased demand, which is just very, very unlikely that we could ever achieve those numbers."

Crossroads COOP’s, Bryan Irey.