Home Indiana Agriculture News April WASDE Released Wednesday

April WASDE Released Wednesday


The latest World Agricultural Supply and Demand Estimates were released Wednesday.

WHEAT: U.S. wheat ending stocks for 2012-13 are projected 15-million bushels higher this month. Seed use for 2012-13 is raised slightly based on producer planting intentions for 2013-14 as reported in the March 28 Prospective Plantings. Feed and residual use for 2012-13 is projected 15-million bushels lower reflecting lower-than-expected disappearance during the December-February quarter as indicated by the March 1 stocks. All-wheat imports are unchanged. The projected range for the wheat season-average farm price is narrowed 5-cents on both ends to $7.70 to $7.90 per bushel.

Global wheat supplies for 2012-13 are raised 2.9-million tons. The increased stocks primarily reflect balance sheet revisions that lower 2011-12 domestic wheat use for several countries this month. Global 2012-13 production is nearly unchanged. Global wheat trade is projected higher for 2012-13 with exports raised 2.6-million tons. World wheat feed and residual use is lowered 5.2-million tons. World wheat ending stocks for 2012-13 are projected 4.0-million tons higher.

COARSE GRAINS: U.S. feed grain ending stocks for 2012-13 are projected higher this month as an increase in ending year corn stocks more than offset reductions for sorghum, barley, and oats. Corn feed and residual disappearance is lowered 150-million bushels. The reduction in corn feed and residual use is partly offset by a combined 20-million bushel increase in projected feed and residual use for the other feed grains based on the March 1 stocks. Adding to 2012-13 feed grain supplies this month are increases of 3-million bushels and 2-million bushels, respectively, in projected barley and sorghum imports. Domestic corn use for 2012-13 is projected 100-million bushels lower as a 50-million bushel increase in corn used to produce ethanol partly offsets the lower projection for feed and residual disappearance. Larger-than-expected March 1 corn supplies, lower corn prices and favorable margins for producing and blending ethanol limit the expected year-to-year decline in ethanol production during the second half of the marketing year (March-August). Corn exports for 2012-13 are projected 25-million bushels lower. Projected U.S. corn ending stocks for 2012-13 are raised 125-million bushels. The projected ranges for the season-average corn and sorghum farm prices are lowered 20-cents at their midpoints to $6.65 to $7.15 per bushel and $6.60 to $7.10 per bushel, respectively. The projected farm price ranges for barley and oats are narrowed 5-cents on each end to $6.30 to $6.50 per bushel and $3.75 to $3.85 per bushel, respectively.

Global coarse grain supplies for 2012-13 are projected higher with a 1.1-million ton increase in world coarse grain production. Global coarse grain trade for 2012-13 is raised slightly. Global corn feed and residual use is down 5.3-million tons with much of the decline reflecting the reduction in the United States.

RICE: Higher-than-previously expected March 1 U.S. rice stocks results in a 5.0-million cwt reduction in all rice 2012-13 domestic and residual use and a commensurate increase in ending stocks. No changes are made on the 2012-13 supply side or to projected exports. Long-grain 2012-13 domestic and residual use is lowered 4.0-million, and medium- and short-grain domestic use is lowered 1.0-million. The all rice 2012-13 export projection is unchanged at 108.0-million cwt.

USDA’s National Agricultural Statistics Service estimated March 1 all rice rough stocks at 104.3-million cwt and milled rice stocks at 6.7-million cwt (9.5 million on a rough-equivalent basis). The March 1 all rice stocks estimate on a rough-equivalent basis at 113.8-million cwt is up 0.8-percent from a year earlier, and up 0.9-percent from the preceding 5-year average. The decrease in 2012-13 domestic and residual use led to a 5.0-million cwt or 17-percent increase in all rice ending stocks to 34.1-million cwt. Long-grain ending stocks are raised 4.0-million cwt to 20.4-million, and medium- and shortgrain stocks increased 1.0- million to 11.5-million. The projected U.S. average milling yield for 2012-13 is reduced to 70-percent, down 0.25-percentage points from last month. The midpoint of the 2012-13 long-grain, medium- and short-grain and all rice season-average prices are unchanged at $14.50 per cwt, $15.90 per cwt and $14.90 per cwt, respectively.

World rice production is reduced 0.5-million tons to 467.6-million tons – still a record. Global consumption is reduced 0.9-million tons. Trade projections for 2012-13 are little changed from a month ago. Global 2012-13 ending stocks at 103.8-million tons are up 0.5-million from last month, but down 1.7-million from the prior year.

OILSEEDS: The U.S. soybean crush for 2012-13 is increased 20-million bushels this month to 1.635-billion. The increase reflects strong soybean meal exports through the first half of the marketing year. Soybean exports are projected at 1.35-billion bushels, up 5-million on stronger-than-expected shipments in recent weeks. Residual use is reduced based on indications from the March 28 Grain Stocks report. U.S. soybean ending stocks are projected at 125-million bushels, unchanged from last month. Soybean oil balance sheet adjustments include increased production, food use, and ending stocks. Increased food use partly offsets reduced imports and consumption of canola oil. The season-average price range for soybeans is projected at $13.80 to $14.80 per bushel, unchanged from last month. Soybean oil prices are projected at 48 to 50 cents per pound, down 1-cent at the midpoint. Soybean meal prices are projected at $415 to $435 per short ton, down 10-dollars at the midpoint.

Global oilseed production for 2012-13 is projected at 468.8-million tons, up 2-million from last month. South American soybean production accounts for most of the change. Global oilseed trade for 2012-13 is projected at 114.4-million tons, down 1.4-million mainly reflecting reduced soybean trade. Global soybean ending stocks are projected at 62.6-million tons, up 2.4-million.

SUGAR: Projected U.S. sugar supply for fiscal year 2012-13 is decreased 122-thousand short tons, raw value, from last month, as lower production more than offsets higher imports from Mexico. Lower planted area and later seeding of the 2013 sugarbeet crop, compared with last year, reduce expected early harvest and sugar production in August and September. For 2012-13 sugar use, the strong pace to date supports an increase of 100-thousand tons. For Mexico, 2012-13 cane sugar production is increased based on increased sugarcane yields. Exports are increased both to U.S. and world markets, while higher ending stocks are in line with recent government forecasts.

LIVESTOCK, POULTRY, AND DAIRY: The 2013 forecast of total red meat and poultry production is lowered from last month. Beef production is forecast down as lower expected fed cattle and bull slaughter more than offset greater cow slaughter. The pork production forecast is raised as the March 28 Quarterly Hogs and Pigs report indicated a slightly higher-than-expected first-quarter pig crop and a smaller decline in the number of sows which farrowed or are expected to farrow in the first half of the year. Hog carcass weights are also raised as feed prices are forecast lower. The broiler production forecast is lowered for the first quarter based on production data to date, but subsequent quarters are unchanged. Turkey production is forecast lower as the turkey price forecast is reduced and hatchery data points to a slowdown in poult placements. The egg production forecast is lowered, reflecting recent hatchery data.

The beef export forecast for 2013 is lowered, reflecting the pace of trade in the first quarter. Beef imports are raised. Pork exports are cut as exports to a number of markets are relatively slow. The broiler export forecast is reduced from last month on expected higher prices. Cattle prices are unchanged from last month. Hog prices are lowered as greater inventories and weaker forecast exports are expected to pressure prices. Broiler prices are raised on robust current prices and demand. Turkey price forecasts are lowered as demand has been weaker-than-expected. The egg price forecast is raised on stronger-than-expected first quarter prices.

The milk production forecast for 2013 is reduced on lower milk per cow in the first quarter. Cow numbers are unchanged from last month. Fat-basis imports are reduced mostly on lower imports of anhydrous products. The skim solids import forecast is reduced largely on lower expected imports of milk protein concentrates. Export forecasts are unchanged from last month. Fat-basis ending stocks are forecast higher, but skim-basis stocks are lowered. With slightly lower forecast 2013 milk production and improved domestic product demand, price forecasts for cheese, butter, NDM and whey are raised. As a result, both Class III and Class IV price forecasts are higher than last month. The all milk price for 2013 is higher at $19.45-$19.95 per cwt.

COTTON: This month’s 2012-13 U.S. cotton estimates include offsetting increases in production and exports, resulting in ending stocks of 4.2-million bales, unchanged from last month’s forecast. Production is raised 280-thousand bales based on USDA’s final Cotton Ginnings report, released March 25, 2013. Domestic mill use is unchanged. Exports are raised to 13.0-million bales, based on the larger supply and strong export shipments to date. The marketing year average price received by producers is now forecast at 70.5 to 73.5 cents per pound, up 0.5-cent on each end of the range, reflecting recent higher prices.

The 2012-13 world cotton estimates show higher beginning and ending stocks and sharply higher trade. World production is forecast slightly lower. World consumption is raised slightly. Forecast world trade is raised 1.8-million bales, including a 1.5-million bale increase for China, based on reported allocations of additional import quotas to mills. World 2012-13 ending stocks are now projected at 82.5-million bales, nearly 1-percent above last month.