USDA’s December World Ag Supply and Demand Estimates report was called “neutral” for corn and soybeans and bearish for wheat.
This month’s 2021-2022 U.S. corn supply and use outlook is unchanged from November. USDA kept corn for ethanol use at 5.25 billion bushels despite forecasts of strong demand and higher production. Corn ending stocks are projected at 1.49 billion bushels, and the season-average farm price is still $5.45 a bushel.
Soybean supply and use projections also remain unchanged. Although soybean crush is unchanged, soybean oil production is raised because of a higher extraction rate. The season-average U.S. soybean price is unchanged at $12.10 per bushel. Lower exports caused USDA to push up ending wheat ending stocks to an unexpected 598 million bushels.
USDA also dropped wheat imports by five million bushels but left all other supply and demand factors at November levels. The season-average farm price rose 15 cents to $7.05 a bushel.