Grain Tidbits - September 14, 2018

10:21 AM 9/13/2018

The USDA crop report released Wednesday, September 12th showed production numbers higher.  The surprise came in the corn yield.  USDA reported an estimate of 181.3 bushels per acre, which surpassed the highest pre-report estimate by 1.3 bushels per acre.  This would give us a production of 14.827 billion bushels nationwide.  On the demand side of the equation, corn demand was increased 125 million bushels. Ending stocks at 1.774 billion bushels and a stocks to use ratio of 12%, are both down from a year ago.  In addition, global ending stocks are down 37.12 million metric tons, which equates to 1.461 billion bushels. World stocks outside of China and the United States are tight.  This equates to only a 37 day supply.  China's stocks are rapidly being depleted.

USDA showed soybean production being estimated at 52.8 bu per acre, which was in line with expectations. With the ongoing trade war, there remains limited markets to access for soybeans.  Their continues to be no bid for the Pacific Northwest market, keeping pressure on basis levels. The market is discouraging soybean production, which pushes acres from soybeans to corn.   

Jim Gallagher

Our Mission/Vision Statement:  To be our customer’s first choice for industry-leading resources and knowledge.