USDA hikes corn, winter wheat crop estimates


USDA hikes corn, winter wheat crop estimates

The USDA has raised its 2021 corn and winter wheat production outlooks following the USDA’s acreage adjustments, while leaving soybeans unchanged.

Corn is now projected at 15.165 billion bushels, up 175 million from June, and raised new crop ending stocks by 75 million bushels to 1.432 billion bushels, with that increase in production cancelling out lower beginning stocks and higher feed use.

Winter wheat is pegged at 1.364 billion bushels, 4% more than in June and up 16% from 2020 thanks to bigger planted area and a better yield, while spring wheat is seen at 344.575 million bushels, down 41% due to drought in some key growing areas. U.S. wheat ending stocks were cut by 105 million bushels to 665 million mainly because of lower production and beginning stocks.

There were no changes to the new crop balance sheet for soybeans. Old crop ending stocks were unchanged, but with the USDA lowering imports and the total supply, while also cutting crush and export use, and reducing the average price outlook.

Globally, the USDA lowered corn production for Argentina and Brazil, and soybean production for Argentina, and reduced the new crop soybean import guess for China.

The USDA’s next set of supply and demand estimates is out August 12th.