The USDA released its latest WASDE report at 11 AM. The Worldwide Agriculture Supply and Demand Estimates showed a reduced production number for U.S. corn and soybeans as compared to the October WASDE.
For corn, they reduced yield to 175.8 bu./acre vs. 178.4 previously, while the average estimate was 177.7. This will result in a production number of 14.507 billion bushels vs. 14.722 previously and an average estimate of 14.659 billion. Ending stocks for 2020/21 also dropped significantly, to 1.702 billion vs. 2.167 in the October report and 2.033 for the average estimate. World ending stocks are now estimated at 291.43 million metric tons vs. 300.45 million previously. Prior to the report, corn was trading 4 to 5 higher, and as of about 11:20 is 10 to 13 higher.
On soybeans, they also reduced yield, production, and ending stocks. Yield dropped to 50.7 bu./acre, down from 51.9 in the October report and 51.6 average estimate. That drops production to 4.17 billion bushels vs. 4.268 previously and an average of 4.251 from the traders' estimates. Ending stocks declined 100 million bushels from the October report, and are now estimated at 190 million. Traders estimated 235 million. World ending stocks also declined, and are now estimated at 86.52 million metric tons, vs. 88.7 previously. Soybeans were about 11 to 13 higher before the report and as of about 11:20 are 25 to 30 higher.
We’ll dig through the rest of the report to find demand numbers and discuss them in tomorrow’s morning comments