Last week, the USDA cut both U.S. and global year-ending supplies for corn and wheat.
The change in 2013–2014 U.S. corn ending stocks, from 1.63 billion to 1.48 billion bushels, comes from the USDA’s upgraded forecast for global trade and stronger U.S. exports. Corn yield and planted acres were unchanged from January’s report. The USDA bumped its 2013–2014 corn price forecast from $4.40 per bushel to $4.50 per bushel. Corn futures, which bottomed at $4.12 on Jan. 9, have stabilized in the mid-$4.40s, closing at $4.45 per bushel on Feb. 14.
Wheat saw an unchanged production estimate but a drop in 2013–2014 ending stocks due to a bump in exports. However, the USDA left its 2013–2014 wheat forecast unchanged, at $6.80 per bushel. Chicago Mercantile Exchange wheat futures, which were still above $6.00 in early January, dropped to lows of $5.51 on Jan. 29, but have since recovered back to $5.98.
Contact John T. Barone at [email protected].
