Ending stocks for the new crop are projected at 2.097 bb, down 5 mb from June and significantly lower than pre-report analyst estimates.
The farm gate price for 2024-25 is projected at $4.30 a bushel, down 10 cents from June.
Looking at the 2023-24 “old crop,” USDA lowered corn ending stocks 223 mb to 1.877 bb. USDA increased both feed and residual used by 75 mb as well as increased exports 75 mb.
Globally, USDA pegs 2024-25 production at 1,224.79 mmt, up 4.25 mmt from June and ending stocks at 311.64 mmt, up 0.87 mmt. USDA pegs 2024-25 Brazilian corn production at 127 mmt and Argentina at 51 mmt.
On the old crop globally, USDA lowered corn ending stocks 3.26 mmt to 309.13 mmt.
USDA also held Brazil’s 2023-24 production at 122 mmt. Exports remain pegged at 50 mmt.
USDA also lowered Argentina’s production to 52 mmt. Export volume was lowered 1 mmt to 37 mmt.
SOYBEANS
Farmers will plant 86.1 million acres of soybeans in 2024, resulting in a 4.435-billion-bushel crop when a 52-bpa trendline yield is applied. Production is down 15 million bushels from last month’s forecast.
USDA lowered its ending stocks forecast for the 2024-25, new-crop marketing year by 20 mb as well, to 435 million bushels. USDA lowered its beginning stocks estimate by 5 mb but left forecasts for crush, export, seed, and residual use unchanged from last month. The national average farm gate price declined by a dime to $11.10 per bushel.
For the old-crop marketing year, USDA lowered its ending stocks forecast by 5 mb, reflecting a corresponding cut to imports. The national average farm gate price dropped by a nickel to $12.50 per bushel.
Globally, USDA made minor revisions to ending stocks estimates for both new- and old-crop marketing years. For 2024-25, stocks declined by 0.14 mmt to 127.76 mmt.
In the 2023-24 year, which includes the recently concluded South American harvest, USDA raised the ending stocks estimate 0.18 mmt to 11.25 mmt. USDA lowered Argentina’s production to 49.5 mmt but left Brazil unchanged at 153 mmt.
WHEAT
USDA increased its estimate of all wheat production to 2.008 billion bushels, up from 1.875 bb in its June report. That is the highest in eight years.
USDA estimates ending stocks for 2024-2025 wheat at 856 million bushels, up from 758 mb in June. Ending stocks for old-crop wheat increased to 702 mb from June’s estimate of 688 mb.
Total use in new-crop wheat was estimated at 1.959 bb, which is up from 1.924 bb in June, with an increase in exports from 800 mb to 825 mb and an increase in feed and residual of 10 mb.
Wheat farm-gate prices were estimated at $5.70 per bushel, down from $6.50 in June.
Winter wheat production is forecast at 1.34 billion bushels, up 4% from the June 1 forecast and up 7% from 2023. As of July 1, the United States yield is forecast at 52.0 bushels per acre, up 0.6 bushel from last month and up 1.4 bushels from last year’s average yield of 50.6 bushels per acre.
Hard red winter production, at 763 million bushels, is up 5% from last month. Soft red winter, at 344 million bushels, is up less than 1% from the June forecast. White winter, at 234 million bushels, is up 4% from last month. Of the white winter production, 19.0 million bushels are hard white, and 215 million bushels are soft white.
Durum wheat production is forecast at 89.3 million bushels, up 50% from 2023. Based on July 1 conditions, yields are expected to average 42.7 bushels per harvested acre, up 5.7 bushels from 2023. Area expected to be harvested for grain or seed totals 2.09 million acres, unchanged from the Acreage report released on June 28, 2024, but up 30% from 2023.
Other spring wheat production for grain is forecast at 578 million bushels, up 14% from last year. Based on July 1 conditions, yields are expected to average 53.1 bushels per harvested acre, up 7.1 bushels from 2023.
If realized, the United States yield would be a record high. Area harvested for grain or seed is expected to total 10.9 million acres, unchanged from the Acreage report released on June 28, 2024, but 1% below 2023. Of the total production, 532 million bushels are hard red spring wheat, up 14% from 2023.
Globally, USDA estimates wheat production at 796.19 million metric tons in July, an increase from 790.75 in June.
USDA estimates production in the European Union at 130.0 mmt, a decrease from 130.5 mmt. Russian production was unchanged at 83.0 mmt. Production in Ukraine also was unchanged at 19.5 mmt.
On wheat world ending stocks, USDA estimated a decrease to 257.24 million metric tons in July from 252.27 mmt in June.
USDA estimates European Union ending stocks at 10.94 mmt, a decrease from 11.44 mmt last month. Russian ending stocks were estimated at 6.74 mmt, down from 7.74 mmt in June.
LIVESTOCK
Friday’s WASDE report was relatively supportive to both the beef and cattle market’s for the rest of 2024, said DTN Livestock Analyst ShayLe Stewart. Beef production for 2024 was increased by 65 million pounds, as although the number of cows being slaughtered has been reduced because of availably, fed steer and heifer processing speeds are expected to remain aggressive through the remainder of 2024. Quarterly steer price projections were increased for 2024 as well: second-quarter steer prices in 2024 are expected to average $188.42 (up $2.42 from last month), steer prices in the third quarter are expected to average $190 (up $7 from a month ago), and steer prices in the fourth quarter of 2024 are expected to average $188 (up $2 from last month). And steer prices in the first quarter of 2025 are anticipated to average $188 (up $2 from last month’s projections). 2024 beef imports fell by 25 million pounds from last month’s report, but 2024 beef exports were increased by 90 million pounds.
Friday’s WASDE report showed mixed support for the pork and hog markets through the rest of 2024. 2024 pork production was increased by 35 million pounds, as not only are carcass weights expected to increase through the second half of the year, but packers are also running more aggressive chain speeds. Quarterly hog price projections were a little disheartening as the influx in supply is likely going to affect cash prices. Hog prices in the second quarter of 2024 are expected to average $65.53 (down $0.47 from last month’s report), hog prices in the third quarter are expected to average $63 (down $5 from last month’s report), and hog prices in the fourth quarter of 2024 are expected to average $56 (down $3 from June’s report). And hog prices in the first quarter of 2025 are expected to average $56 (down $3 from last month’s projections). 2024 pork imports remained unchanged at 1,213 million pounds, and pork exports for 2024 fell by 115 million pounds.
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Join us for DTN’s webinar at 12:30 p.m. CDT Friday, July 12, as we discuss USDA’s new estimates and explain other market aspects. Questions are welcome, and registrants will receive a replay link for viewing at their convenience. Register here for Friday’s July WASDE report webinar: https://www.dtn.com/….
U.S. PRODUCTION (Million Bushels) 2024-25 Jul Avg High Low Jun 2023-24 Corn 15,100 15,060 15,232 14,857 14,860 15,342 Soybeans 4,435 4,416 4,436 4,335 4,450 4,165 All Wheat 2,008 1,913 1,999 1,865 1,875 1,812 Winter 1,341 1,317 1,363 1,280 1,295 1,248 HRW 763 745 793 716 726 601 SRW 344 344 355 328 342 449 White 280 227 240 220 226 198 Other Spring 578 525 553 505 N/A 505 Durum 89 71 85 50 N/A 59 U.S. ENDING STOCKS (Million Bushels) 2023-24 Jul Avg High Low Jun Corn 1,877 2,041 2,126 1,917 2,022 Soybeans 345 353 377 329 350 Wheat 702 698 708 680 688 U.S. ENDING STOCKS (Million Bushels) 2024-25 Jul Avg High Low Jun Corn 2,097 2,272 2,498 2,124 2,102 Soybeans 435 445 507 350 455 Wheat 856 793 863 750 758 WORLD ENDING STOCKS (million metric tons) 2023-24 Jul Avg High Low Jun Corn 309.1 312.0 314.3 308.5 312.4 Soybeans 111.3 110.9 112.5 109.1 111.1 Wheat 261.0 259.9 260.4 259.0 259.6 WORLD ENDING STOCKS (million metric tons) 2024-25 Jul Avg High Low Jun Corn 311.6 312.0 315.0 309.7 310.8 Soybeans 127.8 127.1 128.1 125.5 127.9 Wheat 257.2 252.6 256.0 250.0 252.3 WORLD PRODUCTION (million metric tons) 2023-24 Jul Avg High Low Jun CORN Argentina 52.0 51.4 53.0 48.0 53.0 Brazil 122.0 121.3 122.0 120.0 122.0 SOYBEANS Argentina 49.5 50.0 50.0 49.5 50.0 Brazil 153.0 152.1 153.0 149.0 153.0
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