USDA’s June supply and demand report disappoint market traders. The agency left soybean acreage, production and ending stocks numbers unchanged from May. They also left acreage unchanged on corn, lowered yield 1.5 bushels per acre with the delayed plantings and lowered new crop ending stocks to 1.95 billion bushels. Randy Martinson with Progressive Ag in Fargo, North Dakota says USDA chose to make their acreage revisions in the June 28 report.
USDA lowered new crop ending stocks by 11 million bushels from the May report, but the trade was expecting a bigger cut. And Martinson says he was surprised the agency increased hard red winter wheat production 2-percent, which bumped all wheat production to 2.08 billion bushels.
New crop world ending stocks were lowered slightly for corn and soybeans. However, WASDE cut world wheat carryout by 5 million metric tons to reflect the dryness in Russia and Ukraine