IARN — The USDA released the June Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports on Thursday.
Commodities Broker Greg McBride with Allendale says the U.S. ending stocks for old crop and new crop corn came in under expectations. For 2020/2021 production, corn and soybeans remained unchanged from the May report.
“Just a slight 5 million bushel increase on the old crop, which transfers over into the new crop,” McBride said. “No changes otherwise for new crop, no changes to yield at this point, or acreage. That will keep us steady. The big surprise came in with a friendly report on the world side of things where they actually lowered old crop and new crop stocks for the world for corn.”
McBride says that while the June reports were relatively unchanged from May, producers need to continue monitoring upcoming weather forecasts, which show a possible dry spell in the Midwest.
“The USDA does not view this (report) as bearish as what they could have,” McBride said. “The changes to ethanol were expected, but there are some silver linings out there. The biggest thing to watch now will be this weather pattern. Currently, the 6-to-10 day forecast has no rain west of the Mississippi. With temperatures up in the neighborhood of 7-to-10 degrees higher than normal, that could put a little bit of stress on this crop. I wouldn’t get too friendly on it just yet. If this were to carry on into the first few weeks of July, then you could start to look at getting a little bit friendlier on it.”
The next USDA Crop Production and World Agricultural Supply and Demand Estimates reports will be released on Friday, July 10th. For the latest analysis from McBride and the Allendale team, visit www.allendale-inc.com.
Story courtesy of the Iowa Agribusiness Radio Network.
