The December World Agriculture Supply and Demand report released Tuesday offers a typically quiet-minded update. This month’s corn outlook is for less corn used for ethanol, reduced imports, and larger ending stocks. Corn used to produce ethanol is reduced 50 million bushels to 5.6 billion, based on recent data that shows corn used for ethanol during the September to November quarter declined relative to the prior year for the first time since 2012. The season-average corn price received by producers is unchanged from last month at a midpoint of $3.60 per bushel, but the range is narrowed 5 cents on each end to $3.25 to $3.95 per bushel.
U.S. Soybean supply and use projections are unchanged from last month. With soybean exports and crush unchanged, soybean ending stocks are projected at a record 955 million bushels. The U.S. season-average soybean price for 2018/19 is forecast at $7.85 to $9.35 per bushel, unchanged. The outlook for 2018/19 U.S. wheat this month is for unchanged supplies, lower exports, and higher ending stocks. The projected season-average farm price is up $0.05 per bushel at the midpoint with the range narrowed to $5.05 to $5.25.
Click on the play button below to listen to the Hoosier Ag Today Morning Edition Podcast and hear from Arlan Suderman, Chief Commodities Economist with INTL FCStone as breaks down the report.
Source: NAFB News Service