WASDE Report Looks Good, Says Strain

by Don Molino

During his daily report on the Voice of Louisiana Agriculture Radio Network, Louisiana Commissioner of Agriculture and Forestry Dr. Mike Strain said the January World Agriculture Supply and Demand Estimate report—one of the most sought after USDA reports—produced what could be good news for corn and soybean producers.

Strain pointed out the WASDE report showed no major surprise for corn with yield, production, harvested acres and ending stocks coming in slightly smaller than the trade had estimated in December.

“Yields averaged 174.6 bushels per acre,” said Strain. “Corn for ethanol continues to be positive with exports to china, Canada and Brazil” topping the list.

Excessive rainfall in Argentina will result in fewer corn acres which should mean a drop in production.

“Brazil, on the other hand, is on the dry side in the major growing areas,” Strain pointed out.

Planted corn acres in 2017 are now expected to be down two to four million.

“If acres are down two million with steady demand, ending stocks would fall to 2.3 billion bushels. That projects a season average price in the $3.49 to $4.03 range,” the commissioner said.

Soybeans had the most bullish report.  “Yields were cut to 52.1 bushels per acre and ending stocks were lowered to 420 million bushels.  Harvested acres were reduced 300,000 with 2017 acres now projected at 85.7 million.  With steady demand at that level ending stocks would hit 460 million bushels which would project a price range of between $9 and $11 per bushel,” Strain said, quoting the January WASDE report.