WASDE: Crop prices projected to increaseThe U.S. Department of Agriculture released its June World Agricultural Supply and Demand Estimates report, which projects higher wheat supplies, but lower corn production over last year's record.
Projected U.S. wheat supplies for 2015 to ’16 increased this month on both higher beginning stocks and larger winter wheat production.
Beginning stocks are higher with a 5-million-bushel reduction in 2014 to ’15 exports, partly offset by a 2-million-bushel reduction in imports. Projected production for 2015 to ’16 is up 34 million bushels, mainly on improved prospects for the hard red winter wheat crop in the Central Plains following the late-season rains.
Feed use for 2015 to ’16 increased 15 million bushels to 195 million, and ending stocks increased 21 million bushels to 814 million — the largest ending stocks since 2010 to ’11. The season-average farm price decreased 10 cents per bushel on both ends to $4.40 and $5.40.
Projected corn production for 2015 to ’16 is unchanged at 13,630 million bushels, 4 percent below last year’s record level. Corn beginning stocks for 2015 to ’16 increased with a 25-million-bushel reduction in 2014 to ’15 forecast corn use in ethanol production, based on data reported in the Grain Crushings and Co-Products Production report through April.
This month’s U.S. soybean supply and use projections for 2015 to ’16 include lower beginning stocks, slightly higher crush and lower ending stocks. Lower beginning stocks reflect higher crush and export projections for 2014 to ’15. Soybean ending stocks for 2014 to ’15 are projected at 330 million bushels, down 20 million from last month. Ending stocks for 2015 to ’16 are reduced 25 million bushels to 475 million.