Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
WASDE: global supplies tighten; U.S. corn production trimmed and price outlook rises
Loading...
Summary
The World Agricultural Supply and Demand Estimates (WASDE) reflected small global production changes but tighter ending stocks overall; U.S. corn production was lowered and the season‑average corn price was raised to $4.25 per bushel.
Dr. Mark Jekanowski, chair of the World Agricultural Outlook Board, presented the WASDE updates accompanying NASS’s crop production and stocks releases, emphasizing tighter global ending stocks and a series of country‑level adjustments.
Jekanowski said global wheat production was “up 300,000 tons” based on updated government data (including National Bureau of Statistics figures for China) but that global ending stocks remain “the tightest ending stocks since 2015–16.” He noted reductions in Russian and Ukrainian exports that contributed to trade adjustments this month.
For corn, he said U.S. production was reduced by roughly 276,000,000 bushels, contributing to a 3.5 million‑ton decline in global production and a 3.1 million‑ton tightening of ending stocks. “With those tighter supplies, we raised the season average price 15¢ per bushel, to $4.25,” he said, and flagged South America (Argentina and Brazil) as the market focus going forward.
Jekanowski summarized soybean changes as largely driven by U.S. reductions; global crush was raised by about 1.9 million tons largely for Brazil, and U.S. ending stocks tightened after a 95,000,000‑bushel production cut. He also highlighted a large increase in soybean oil exports (raised 500,000,000 pounds), which reduced domestic availability for biofuel use.
On cotton, the WASDE raised China’s production and adjusted trade flows (Brazil up, U.S. exports down), which increased global ending stocks and lowered the U.S. season‑average cotton price to $0.65 per pound. Jekanowski covered smaller adjustments for sugar (including Mexico’s imports), livestock and dairy and closed by thanking contributors and noting the next WASDE in a month.
Why it matters: WASDE is a primary global supply‑and‑demand reference used by traders, processors and policymakers; small monthly revisions can alter price expectations and trade flows. Jekanowski said markets will pay close attention to South American harvest prospects in the coming weeks.
