WASDE Report Points to Potential Year-Long Corn Bull Market
The August WASDE report from the US Department of Agriculture was bullish for corn. Old crop exports increased to 3.4 billion bushels, leading to a decrease in old crop ending stocks to 1.945 billion. New Crop acres are up by 1.4 million to 96.7 million.
New crop ending stocks are now 1.653 billion, which is approximately 10% stock/usage. This tightness is expected to drive prices higher in the coming months.
Soybean acres also saw an increase of 1.4 million to 86.8 million, while yields decreased slightly to 52.7. New crop ending stocks for soybeans stand at 320 million bushels, about a 7% stock/usage ratio. This is still considered neutral by analysts.
Craig Turner notes that with combined corn and soybean acres of 183.5 million, this could be a record. He also points out that wheat acres are currently at 42.7 million, and if demand increases, the market may need an additional 2-3 million acres to meet supply.