Home Indiana Agriculture News USDA Releases June Crop Report

USDA Releases June Crop Report


USDA-Washington-DCThe latest World Agricultural Supply and Demand Estimates were released Wednesday. Since planting is still underway in the Northern Hemisphere and remains several months away in the Southern Hemisphere – it is noted that the projections are highly tentative.

WHEAT: Projected U.S. wheat supplies for 2013-14 are raised this month with an increase in beginning stocks and higher forecast winter wheat production. Beginning stocks are higher with a 15-million-bushel reduction in 2012-13 exports as May shipments fell below expectations. Projected production for 2013-14 is up 23-million bushels. Exports are projected 50-million bushels higher for 2013-14. Ending stocks for 2013-14 are projected down 11-million bushels. Projected stocks of 659-million bushels remain at a five-year low. The projected range for the 2013-14 season average farm price is raised 10-cents on both ends to $6.25 to $7.55 per bushel. This is down from the record $7.80 per bushel expected for 2012-13.

Global wheat supplies for 2013-14 are lowered 5.6-million tons. World production is projected at 695.9-million tons, down 5.2-million from last month. Global wheat consumption for 2013-14 is reduced slightly. Global wheat trade is raised. World ending stocks for 2013-14 are projected at 181.3-million tons, down 5.1-million from last month and just above the level projected for 2012-13.

COARSE GRAINS: The outlook for 2013-14 U.S. feed grain supplies is lowered this month as delayed plantings reduce yield prospects for corn. Projected corn production is lowered 135-million bushels to 14.0-billion with the average yield projected at 156.5-bushels per acre, down 1.5-bushels from last month. With reduced production prospects, domestic corn usage is projected 70-million bushels lower for 2013-14. Projected feed and residual disappearance is lowered 125-million bushels with the smaller crop, higher expected prices and increased availability of distillers’ grains. Corn used in ethanol production is raised 50-million bushels in line with an increase this month for the 2012-13 marketing year. Other food and industrial uses are also projected higher, up 5-million bushels from last month. Corn ending stocks for 2013-14 are projected 55-million bushels lower. At the projected 1.9-billion bushels, ending stocks are expected to be 2.5 times their 2012-13 level. The season-average farm price range for corn is raised 10-cents per bushel on each end to $4.40 to $5.20 per bushel.

Increases are also projected for the sorghum, barley, and oats farm price ranges this month. Changes for 2012-13 include higher corn and oats imports, higher corn food, seed, and industrial use, and reduced corn exports. Corn imports are raised 25-million bushels. Oats imports are raised 3-million bushels reflecting shipments to date. Corn used in ethanol production is raised 50-million bushels for 2012-13 based, in part, on higher-than-expected May ethanol production as indicated by weekly data reported by the Energy Information Administration. Other food and industrial use is projected up 15-million bushels with increases projected for corn use in cereals and beverage and industrial alcohol. Corn exports are projected 50-million bushels lower. Projected corn ending stocks for 2012-13 are raised 10-million bushels.

Global coarse grain supplies for 2013-14 are projected 4.3-million tons lower. Global coarse grain beginning stocks are also lowered. Global 2013-14 coarse grain trade is raised slightly this month. Global corn consumption is down 1.7-million tons. Global corn ending stocks for 2013-14 are projected 2.8-million tons lower. At the projected 151.8-million tons, 2013-14 world corn stocks would be up 27.5-million tons from 2012-13 and the largest in 12 years.

RICE: The 2013-14 all rice supply and use balance sheet is unchanged from last month. Small revisions are made to the 2013-14 rice by-class supply and use balance sheets. Rice by-class 2013-14 beginning stocks forecasts are changed based on small adjustments to 2012-13 rice by-class balance sheets. Long-grain rice 2013-14 beginning stocks are raised 1.0-million cwt to 21.4-million resulting from a reduction in the 2012-13 export forecast now projected at 76.0-million. Combined medium- and short-grain 2013-14 beginning stocks are lowered 1.0-million cwt to 10.5-million resulting from an increase in the 2012-13 export forecast now projected at 32.0-million. Rough rice exports for 2012-13 are lowered 1.0-million cwt to 35.0-million and combined milled and brown rice exports are raised 1.0-million to 73.0-million. No other changes are made to 2012-13 and 2013-14 U.S. rice supply and use balance sheets except for season-average farm price forecasts. The 2013-14 U.S. long-grain rice season-average farm price is projected at $13.90 to $14.90 per cwt, up 10-cents per cwt on each end from a month ago and compares to a revised $14.30 to $14.50 per cwt for 2012-13. The 2013-14 combined medium- and short-grain rice season average farm price is $15.80 to $16.80 per cwt, an increase of 30-cents per cwt on each end from last month and compares to a revised $16.00 to $16.20 per cwt for 2012-13. The 2013-14 U.S. all rice season-average farm price is projected at $14.50 to $15.50 per cwt, up 20-cents per cwt on each end from a month ago and compares to a revised $14.80 to $15.00 per cwt for 2012-13.

Global 2013-14 rice supply and use is little changed from a month ago. Global rice production is projected at a record 479.2-million tons, down less than 100-thousand tons from last month. Global 2013-14 exports are lowered 0.5-million tons to 38.4-million. Global 2013-14 consumption is lowered 0.3-million tons. Global ending stocks for 2013-14 are projected at 108.6-million tons, up 0.8-million from last month.

OILSEEDS: U.S. soybean supply and use projections for 2013-14 are unchanged from last month. Changes for 2012-13 include increased soybean imports and crush, and reduced exports. Soybean imports are raised 5-million bushels to 25-million. Soybean exports for 2012-13 are reduced 20-million bushels to 1.33-billion bushels. Although soybean exports are reduced, U.S. soybean meal exports are increased this month. As a result of increased soybean meal exports, the U.S. soybean crush is projected at 1.66-billion bushels, up 25-million. Soybean ending stocks for 2012-13 are projected at 125-million bushels, unchanged from last month. The 2013-14 season-average price for soybeans is forecast at $9.75 to $11.75 per bushel, up 25-cents on both ends of the range. Soybean meal prices for 2013-14 are forecast at $290 to $330 per short ton, up 10 dollars on both ends. The soybean oil price forecast is unchanged at 47 to 51 cents per pound.

Global oilseed production for 2013-14 is projected at 490.8-million tons, down 0.5-million from last month.

SUGAR: Projected U.S. sugar supply for fiscal year 2013-14 is increased 435-thousand short tons, raw value, from last month. Imports from Mexico are increased based on Mexico’s higher carryover from the large 2012-13 crop. U.S. ending stocks for 2012-13 are up because higher imports from Mexico more than offset lower tariff rate quota imports. Mexico’s 2012-13 production is increased to reflect the strong pace of harvest to date. For both countries, 2013-14 use is unchanged from last month and ending stocks are increased.

LIVESTOCK, POULTRY, AND DAIRY: The forecast for total meat production in 2013 is raised from last month as higher beef and broiler production more than offsets lower pork production. Beef production is raised from last month as poor forage conditions have resulted in relatively large placements of cattle in feedlots in the first part of 2013 and cow slaughter remains high. Broiler slaughter is raised slightly for the third quarter, reflecting hatchery data. Pork production in second quarter is lowered based on the pace of hog slaughter and slightly lower expected carcass weights. Turkey production is unchanged from last month. Egg production is raised. Red meat, poultry, and egg production forecasts for 2014 are unchanged from last month. Forecasts for 2013 beef exports are reduced from last month as trade to a number of markets has been relatively weak. Broiler exports are raised based on export strength to date. Pork exports are unchanged. Forecasts for 2014 are unchanged from last month. Cattle price forecasts for 2013 are lowered from last month, reflecting lower-than-expected prices to date. Broiler prices are raised, reflecting strong domestic and export demand. Hog prices are raised as tighter supplies have pushed prices higher. Price forecasts for 2014 are unchanged.

The milk production forecast for 2013 is unchanged. For 2014, the production forecast is lowered as relatively weak milk-to-feed ratios in the third and fourth quarter of 2013 are expected to slow production growth in the first half of 2014. Fat basis exports for 2013 are lowered based on slow butter exports through April. Skim-solid exports are higher based on expectations of continued robust nonfat dry milk (NDM) exports. Fat and skim basis exports for 2014 are unchanged. Fat basis imports are raised for 2013 and 2014. Forecasts for 2013 cheese and butter prices are lowered from last month, reflecting greater stocks and weaker-than-expected prices to date. The NDM price is raised on tightening supplies and expectations of continued robust export demand. The price range for whey is narrowed. As a result of the lower cheese price forecast, the Class III price is reduced. The Class IV price is down as lower butter prices more than offset higher NDM. For 2014, the butter price forecast is lowered as stocks remain high, but other product prices are unchanged. The Class III price forecast is unchanged, but the Class IV price is lowered. The all milk price is forecast at $19.60 to $20.00 per cwt for 2013 and $18.95 to $19.95 for 2014.

COTTON: The 2013-14 U.S. cotton supply and demand balance sheet shows lower beginning and ending stocks, lower production, and higher prices relative to last month. The 2012-13 export estimate is raised 350-thousand bales to 13.6-million, reducing the current season’s ending stocks forecast. At the same time, projected U.S. production for 2013-14 is reduced to 13.5-million bales. With the total 2013-14 supply 900-thousand bales below last month, U.S. exports are reduced 500-thousand bales to 11.0-million and ending stocks are reduced to 2.6-million, the equivalent of 18-percent of total use. The projected range for the marketing-year average price of 73 to 93 cents per pound is raised 5-cents on each end, with a midpoint of 83-cents per pound, 15-percent above the estimated average for 2012-13.

This month’s changes to the world cotton estimates for both 2012-13 and 2013-14 result primarily from a sharp increase of 1.75-million bales in China’s 2012-13 imports to a level of 20.0-million. Higher imports by China in the current season are drawing stocks out of exporting countries and constraining the 2013-14 supply outside of China available for global consumption and trade. World production in 2013-14 is reduced slightly from last month. World consumption also is reduced slightly. Projected world 2013-14 ending stocks are reduced marginally.