The USDA Report was released on Tuesday. World wheat production was increased by 10.9 million tonnes, to 716.1 million tonnes. Of this, there was a 6 million tonne increase from Russia, 2 million from China and 1 million for Ukraine. Due to quality issues in Russia, the EU & Ukraine this season there is an increase in feed wheat use. Global ending stocks up by 3.4 million tonnes, which is a 3 year high.
US corn production was increased by 2.1 bushels per acre to 167.4 bushels/acre. The market was expecting 170 bushels and aren’t ruling out further increases in the next estimate. Global coarse grain production is increased by 4.9 million tonnes, consumption is also raised, due mostly to an increase in ethanol use in the US. Soybean production was lifted and as a result, US oilseed production is projected at 113.7 million tonnes, up 0.6 million. Yield estimates for soybeans is 45.4 bushels/acre, up 0.2 bushels from last month. US soybean production was up, but global oilseed production for 2014/2015 is lowered.
US cotton production is raised to 17.5 million bales. Global production is also raised for the US, India, Mexico but lowered in Brazil & Australia. World ending stocks are now projected at a whopping 105.1 million bales!
For anyone interested in summer cropping alternatives, please have a look at the links in our email. There is a comprehensive Mungbean Cropping Guide, and some pricing information for mungbeans, soybeans, sorghum & corn.
Northern grain markets have seen a decline from last week not only from a fall in global grain values on the back of the bearish USDA report, but also due to rain forecast this weekend for southern QLD & northern NSW. Consumers & traders alike have gone to ground as they sit on their hands until they see what falls in the rain gauge. We have seen an average decline in prices across the grains complex of $10-$15/mt. Sorghum delivery periods are moving out further with some buyers saying they are now looking to buy for Jan/Feb next year. Many of the beef feedlots are happy with the results they are getting from wheat & barley, so sorghum is not on their radar. Barley is hard to come by, so most consumers are sticking with a ration of mainly wheat.