7 November November 2024 USDA Supply & Demand November 7, 2024 By John Roach USDA Supply/Demand 0 Futures jumped Friday afternoon after the USDA projections for corn and soybeans came in generally below expectations. Corn, soybeans and wheat prices moved quickly higher on numbers that turned out to be slightly more bullish than had been predicted. The USDA reduced its corn crop projection by 60 million bushels (mbu) from last month’s report to 15.143 billion bushels, 1% lower than last year. The report left the acreage projection unchanged at 82.7 million acres and made a slight reduction in yield to 183.1 bushels per harvested acre (bpa). In addition, ethanol use was unchanged at 4.45 billion bushels. Soybean production was reduced by 3%, or 121 mbu, from the October forecast to 4.461 billion bushels, which would still be a record high. Yields were cut to 51.7 bpa from 53.1 bpa last month while acreage was unchanged from last month’s estimate of 86.3 million acres, but still 5% higher than 2023. The smaller crop was, however, predicted to trim U.S. soybean ending stocks to what one analyst called a “more manageable 470 mbu.” Corn stocks were expected to shrink to 1.93 billion bushels. The USDA’s wheat production estimate was unchanged at 1.97 billion bushels, unchanged from the October prediction. Ending stocks were increased by 3 mbu to 815 mbu. The cotton crop was reduced slightly to 14.2 million bales, which was still 18% higher than last year. Worldwide ending stocks projections for corn and soybeans were reduced and came in below expectations. The reductions, however, were pinned in large part to the smaller U.S. crops rather than trouble in South America. The USDA left most of its South American corn and soybean numbers unchanged from last month, although it nudged the 2023-24 Argentine soybean crop a little higher wile reducing its estimate for the 2024-25 wheat harvest. Source: USDA, Reuters Related Posts May 2024 USDA Supply & Demand This month’s WASDE report was surprisingly bullish for US corn and wheat, with old and new crop carryout estimates of both coming in smaller than trade expectations. Prices of corn and all three wheat crops continued to move higher shortly after the report release. Lean into these continued rallies by making more sales of corn and all three classes of wheat. We were previously at 20% old crop and 10% new crop. Add another increment of 10% to old crop, and 5% to new crop sales. The USDA made some cuts to their South American production estimates, but overall, they cuts were smaller than trade expected. Thus, the USDA continues to lower their South American production estimates at a conservative pace. Corn The USDA cut 100 million bushels from their old crop (2023-24) US carryout estimate, which was 78 million below the average trade estimate. Then the first 2024-25 carryout estimate for US corn came in 182 million bushels less than trade expected. The new crop production estimates begin with assumptions of 90.0 million acres planted and a 181.0 bpa ... June 2024 USDA Supply & Demand Nothing jumped out as a headline in USDA reports The government didn’t change anybody’s mind with their numbers this month. The USDA only made small adjustments to their US and global supply demand numbers this month. The one area trade expected changes, in South American production, they continued to stick to their guns of higher production numbers. The USDA is not ready to follow the private South American estimates lower. We are heading into the important part of the US crop growing season. It is hard to get crops rated much better than 75% good to excellent. Normally crop ratings will only go down from here, but ratings are still expected to be good again this week. Expect choppy trade to continue. USDA US Summary The 2024-25 U.S. corn outlook is unchanged relative to last month. The season average price received by producers remains at $4.40 per bushel. USDA will release its Acreage report on June 28, which will provide survey-based indications of planted and harvested area. The 2024/25 outlook for U.S. soybeans includes higher beginning and ending stocks. Higher beginning stocks ... September 2024 USDA Supply & Demand The changes this month from the USDA were mostly minor adjustments from their August estimates, particularly with soybeans and wheat, which both saw little to no changes from last month. In the end US carryout totals for corn and soybeans both declined this month, while US wheat carryout remained unchanged. For corn, the direction of change was not in line with pre-report trade expectations. While traders forecast the USDA to make cuts to their US corn acreage and yield estimates, the agency left corn harvested acreage unchanged and increased their corn yield estimate half a bushel higher. The result was a US corn production of 15.186 billion bushels, 39 million larger than last month. However, incoming stocks were reduced by 55 million bushels, which canceled out the larger production total and left US 2024-25 new crop corn carryout at 4.586 billion bushels, 16 million smaller than August. Global corn carryout was down from last month but larger than trade expectations. The USDA left US soybean harvested acreage and yield unchanged this month. Beginning stocks were down 5 million bushels and ... November 2023 USDA Supply & Demand Traders react bearish to USDA numbers Corn The USDA raised their US corn yield estimate by nearly 2 bushels, increasing their estimate from 173.0 to 174.9 bpa from October to November. The USDA raised the 2023 US corn production to a record 15.234 billion bushels, up from 15.064 billion last month, and the average trade estimate of 15.079 billion. Corn ending stocks for next fall were estimated at 2.156 billion bushels, up from 2.111 billion last month, and the average trade guess of 2.131 billion bushels. Corn is in a 4-Box Buy Signal. Livestock producers should be purchasing feed. Soybeans The USDA bean yield was also increased, moving to 49.9 bpa from 49.6 bpa last month. The USDA soybean production estimate was pegged at 4.129 billion bushels, up from 4.104 billion last month. Soybean carryover increased to 245 million bushels, compared to 220 million bushels last month, and the average trade estimate of 222 million bushels. Wheat US wheat carryout for next July increased to 684 million bushels, compared to 670 million last month and the average trade estimate of 669 million bushels. Thoughts These numbers were ... November USDA Supply/Demand USDA raises corn and bean yields slightly; little change in stocks. Although it was not immediately apparent in the USDA supply demand report, Argentina is moving into a key role in world corn prices. The USDA forecast total world coarse grain exports at 225.12 million metric tons in today’s report. 59.22 million tons were forecast to be shipped from the United States, with 46.5 million tons from Argentina, and 47.03 million tons from Brazil. That Argentine number was down half a million tons from last month. Drought in Argentina is threatening their corn crop and moving that country into a more important role in corn prices. Our weather consultant didn’t see immediate relief for the Argentine drought in his report this morning. The majority of the Brazilian corn crop is planted as a second crop following soybeans and won’t have much impact on our market for several months. Meanwhile, corn prices have been beat down due to low water in the Mississippi and discounted feed grain prices in the Black Sea region. Our system is giving us the sixth day of a Buy ... July 2024 USDA Supply & Demand We were buyers this week. We have corn, soybeans, and wheat in Extended 3-Box Buy Signals. We have been telling livestock feeders and users it is time to accumulate. Grain prices are well below any price buyers budgeted earlier in the year. Corn The USDA’s analysis of the stocks and all positions report caused them to increase corn usage estimates for the bushels in the bin, cutting 2023-24 corn stocks 120 million bushels below the lowest trade guess. The average trade guess expected the USDA to increase corn stocks by 27 million bushels. The USDA also increased usage by 100 million bushels for the new crop year and left the yield estimate unchanged. Their estimate today pegs ending stocks as of August 31, 2025, at 2.097 billion bushels, 215 below the average trade estimate. World corn carryout increased slightly from the June estimate. Cheap grain increases usage. We are not trying to make a bullish argument, although we believe prices are cheap enough and have adjusted to current surplus fundamentals. Weather is the biggest uncertainty. Soybeans Very small changes were made ... Comments are closed.