Wheat Prices Plummet as Corn Finds Support in Latest USDA Reports
The USDA's latest crop production and world agricultural supply and demand estimates (WASDE) reports painted a mixed picture for grain markets. While corn and milo found support, wheat and oilseed prices plummeted following the release.
In the wheat market, higher global production projections and increased ending stocks sent shockwaves through the industry. The USDA projected 30.2 billion bushels of worldwide wheat production, up 115 million bushels from August, driven by larger harvests in Australia, Canada, Ukraine, and Argentina. Global export forecasts declined on reductions for Russia, Ukraine, Egypt, and Kazakhstan.
HARD RED WINTER (HRW) futures dropped 20 cents on Friday and an additional six cents on Monday to close at $7.92 per bushel. Oklahoma cash basis ranges between -55 and -70 cents.
The corn market was a different story, however. December corn futures closed Monday at $5.33 per bushel, gaining three cents to recover from Friday's modest losses. Oklahoma cash prices range from $4.96 to $5.13. Corn avoided the sharp downturn experienced by wheat, supported by lower national yield projections and steady domestic ethanol and export demand.