Tridge summary
The USDA's World Agricultural Supply and Demand Estimates report, released on July 12, 2022, provided a mixed outlook for key crops, with slight reductions in production estimates for 2022 soybeans and corn, despite higher than expected spring wheat, durum, and wheat production. The report also indicated slight decreases in domestic corn, soybean, and wheat ending stocks for the 2021/22 marketing year, alongside minor adjustments for the 2022/23 marketing year.
Grain market analyst Jacqueline Holland highlighted the report's bearish tone, especially for soybeans, attributing it to buyer hesitance due to a potential global recession and high commodity prices. The larger U.S. corn crop, alongside expectations of demand destruction and reduced usage, has led to increased ending stocks, despite a smaller crop from Paraguay and reduced global usage due to high prices. The soybean market faces demand threats, particularly in export markets, as high prices are expected to drive demand destruction in the new crop marketing year. Wheat markets remain competitive, with increased export forecasts for the 2022/23 marketing year, driven by lower prices making U.S. grain more competitive internationally. However, hot and dry weather in the European Union and Canada, along with the ongoing Russian invasion of Ukraine, have led to significant production cuts in wheat, resulting in reduced global domestic usage estimates.
Grain market analyst Jacqueline Holland highlighted the report's bearish tone, especially for soybeans, attributing it to buyer hesitance due to a potential global recession and high commodity prices. The larger U.S. corn crop, alongside expectations of demand destruction and reduced usage, has led to increased ending stocks, despite a smaller crop from Paraguay and reduced global usage due to high prices. The soybean market faces demand threats, particularly in export markets, as high prices are expected to drive demand destruction in the new crop marketing year. Wheat markets remain competitive, with increased export forecasts for the 2022/23 marketing year, driven by lower prices making U.S. grain more competitive internationally. However, hot and dry weather in the European Union and Canada, along with the ongoing Russian invasion of Ukraine, have led to significant production cuts in wheat, resulting in reduced global domestic usage estimates.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
Markets edged lower on a mostly quiet World Agricultural Supply and Demand Estimates report published by USDA this morning. Notably, USDA trimmed production estimates for 2022 soybean production on lower acreage reported in the June 30 Acreage Report. USDA did not increase 2022 U.S. corn production estimates by as much as markets were expecting but the U.S. is still on track to harvest the fourth largest crop on record. Spring wheat, soft winter wheat and durum production estimates were higher than expected by the trade, lifting 2022 wheat production estimates even though USDA-NASS cut national yields by 0.2 bushels per bushel to 48.0 bushels per acre. USDA also made slight usage cuts to domestic corn, soybean and wheat ending stocks for the 2021/22 marketing year, alleviating some old crop supply concerns. USDA continued those cuts into the 2022/23 marketing year for soybeans on the smaller 2022 crop, left 2022/23 corn usage unchanged, and increased wheat exports for the 2022/23 ...
Source: Prairie Grain Partners
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