The USDA has released its latest World Agricultural Supply and Demand Estimates (WASDE) report.
"The report surprises all came in the global numbers, which were raised," said Dan Basse, president of Chicago's Ag Resource Company.
US wheat ending stocks for 2016/17 have been raised 30 million bushels and are projected to reach a near 30-year high, now sitting at 1,159 million bushels. Global 2016/17 wheat supplies are raised 1.7 million tons due to higher projected beginning stocks and a 0.3-million-ton increase in production. Global ending stocks are raised 2.3 million tons to 252.3 million.
This month’s 2016/17 U.S. corn outlook is for increased corn used to produce ethanol, reduced feed and residual use. Global coarse grain production for 2016/17 is forecast 4.4 million tons higher from last month to 1,346.1 million. Major global trade changes for 2016/17 this month include higher projected corn exports for Brazil and Argentina.
US soybean ending stocks are projected at 445 million bushels, up 10 million from last month. Global oilseed production is raised 5.4 million tons to 563.4 million mainly on a combined 5-million-ton increase in soybean production for Brazil, Paraguay, Uruguay, and Argentina. Global soybean stocks are projected at a record 87.4 million tons, 10.3 million above a year earlier.
"I wouldn't want to become overly bearish of things, at least at this juncture. We still have northern hemisphere crops to make, so if you're a producer look for rally's to sell. I wouldn't be making sales, at least not at these prices right now," said Basse.