South Dakota corn, soybean crops to be smaller this year

Global 2015-16 soybean ending stocks were projected at 86.88 million tonnes, compared with 80.57 million tonnes forecast for the current year. Meanwhile, the government said soybean inventories would total 470 million bushels, outstripping analysts’ expectations for 305 million.

Kass says it all comes down to simple supply and demand. Soybeans production at 11.1 million bushels is down 28 percent from past year.

The department now expect the season average farm price for wheat to be between $465 and $5.55 a bushel – down 10 cents on the low and and 20 cents on the high end. Earnings would be the lowest since 2009 and down nearly 43 percent from the record high of $129 billion just two years ago. “There’s a lot of weather coming down the pike”. “It’s going to be a tougher year than farmers expected, especially those that did not forward-sell this year’s crop at higher prices”. Imports were raised slightly with total supply up 132,000 tons from July. This suggests a 4% increase over previous year. Ethanol stocks declined this week by 710,000 barrels to 18.53 million barrels.

Indiana’s farmers are expected to produce significantly less corn this year while soybeans didn’t take as bad a hit after flooding that devastated parts of the state.

Soybeans futures were up overnight by 1% after dropping over 60 cents, or almost 6% yesterday in response to the bearish USDA report.

The Farm service Agency will release the first of several prevent planted acreage data on Monday.

Euronext wheat rose on Thursday, tracking a bounce in U.S. futures after heavy losses a day earlier triggered by a surprise increase to official U.S. corn and soybean forecasts. The drop is due to farmers reduced sowings and an early summer heatwave impacted yields. The dialogue leading up to the August WASDE report for soybeans was consistent with the expectations in corn. They are changing the requirement for importers of distillers’ grains (DDGS) and sorghum to register details of their purchases under a new system to come into effect from September 1.

The greenback slid over 1% against a basket of world prices, lending some support to the prices of US denominated commodities.

Nationwide, corn production is forecast to be at 13.7 billion bushels.

The USDA 2016 wheat carryover number was below the average of pre-report trade expectation at 858 million bushels.