WASHINGTON — Crop numbers in July’s World Agricultural Supply and Demand Estimate (WASDE) report released July 11 by the USDA are generally in line with what the industry was expecting, according to the American Farm Bureau Federation.
Corn stocks came in higher than expected and wheat and soybean stocks generally met expectations, said Terry Francl, AFBF senior economist.
“The one shoe that’s hanging over the corn market is the fact that USDA used the harvested acres from the June report,” Francl said.
“Most analysts believe that there will be up to a 2 million acre reduction in harvested corn acreage in the August report. Those numbers could get adjusted real quick.”
Corn ending stocks for 2008-2009 are projected higher in July as higher carryin and reductions in food, seed and industrial uses more than offset lower production and higher feed and residual use.
USDA’s corn ending stocks estimate for July is 833 million bushels, up from the June estimate of 673 million bushels.
In general, the July report shows a tight supply and demand situation for both corn and soybeans with wheat showing a slightly stronger supply and demand picture due to rising U.S. and world stocks.
“It is the world developments that are influencing wheat stocks, particularly the drought in Australia,” said Francl said.