Impact of COVID-19 on Agriculture

USDA WASDE Rebalances Corn and Soybean Production

News / Newsline October 12, 2021

Credit: Arkansas Farm Bureau, used with permission.  

USDA released its monthly World Agriculture Supply and Demand report Tuesday. Micheal Clements shares the highlights.

Clements: USDA production adjustments in the latest WASDE report increased ending stocks for corn and soybeans. American Farm Bureau Federation Economist Shelby Myers says USDA revised yields for corn and soybeans are slightly higher.

Myers: We see an increase in yield from USDA from 176.3 bushels per acre to 176.5 bushels per acre. What this does is really puts pressure on corn production that we weren't expecting earlier in the season. This is the best yield on record, second behind what we saw in 2017, so a lot better corn out there that we thought.

Clements: 2021-22 soybean production expectations are up to 4.5 million bushels, potentially the largest U.S. production on record.

Myers: Soybean supply and demand expectations I think are the big shocker of the day. Ending stocks for the 2020-21 marking year were increased by 81 million bushels, and the revision still puts soybean ending stocks about 51 percent behind 2019 stocks. The carryover then pushes overall soybean supply up for the 21-22 marketing year, as well as we see an increase to yield.

Clements: USDA made additional changes in the wheat forecast, reducing supplies with lower domestic use and decreased ending stocks.

Myers: Stocks-to-use ratio for the 2021 wheat crop year continues to sit at about 40 percent. But what that's doing is really impacting this year's marketing year, for the 21-22 marketing year. That stock carry over number is at its lowest point since 2014. Stocks-to-use ratio has fallen again this month for wheat going from 29.8 percent to 28.5 percent.

Clements: Learn more on the Market Intel page at Micheal Clements, Washington.

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