No actual surprises in June WASDE report amidst bearish markets

The USA Division of Agriculture (USDA) is out with its June World Agricultural Provide and Demand Estimates (WASDE) report.

There have been no main surprises within the report, however markets noticed one other sell-off following its launch.

After quite a few rain situations in a few of the wheat rising zones, the outlook for wheat this month is for bigger provides, home use, exports, and ending shares. Provides are raised on elevated manufacturing, which is up 44 million bushels to 1,781 million. Winter wheat took one of many larger jumps, with a forecast at 1,201 million bushels on a rise in harvested space.

The 2022/23 wheat export forecast was raised 25 million bushels to 800 million, because of the latest decline in U.S. commodity costs making exports extra aggressive in worldwide markets. The projected season-average farm worth (SAFP) is lowered $0.25 per bushel to $10.50 on declines in futures and money costs.

World wide, EU wheat manufacturing is lowered 2.0 million tons to 134.1 million, as ongoing dry climate lowered yield prospects primarily in Spain, Italy ,and Germany. Ukraine manufacturing is lowered 2.0 million tons to 19.5 million on a discount in harvested space.

For corn within the U.S, the report was bearish — projecting heavier ending shares at 70 million bushels.

International corn manufacturing took a downturn, with reductions for Russia, and the EU, and Kenya partially offset by a rise for Paraguay.

Soybean manufacturing is down as nicely, with a projection of 4.5 billion bushels, down 135 million on decrease harvested space.

The soybean yield forecast is unchanged at 51.5 bushels per acre, and crush is lowered 10 million bushels, reflecting a decrease soybean meal export forecast. Ending shares for 2022/23 are projected at 230 million bushels, down 50 million from final month.