The Zaner Team Recaps April USDA WASDE

The USDA's April WASDE report includes updated projections for US and global crop supply and demand estimates. The report projects larger US corn and soybean ending stocks than expected, due to increased production estimates.

Overall, the report suggests a bearish outlook for corn and soybean prices, while wheat prices may face pressure from increased global supplies. However, weather and other factors could still impact crop yields and prices in the coming months.

WATCH: The Zaner Ag Hedge Senior Market Strategists break down the latest WASDE report. 

April 2023 USDA WASDE Report Breakdown:

1 The USDA announced a mostly muted US ending stocks estimate; and generally in line with analysts expectations seeing lower wheat stocks with higher beans.  US wheat stocks came negligibly lower at 568 million bushels, corn unchanged at 1.342 billion bushels, while US soybean stocks were inline with trade expectations, 12 million bushels higher at 210 million bushels (arguable getting tight with pipeline).

2 The USDA's World Ending stocks were a bit more informative at face value; although the trade was mixed on the reaction in price action after the report.  Global wheat stocks were seen lower to 265.05 million metric tons, down 2.15 million metric tons from March estimates.  Corn stocks also fell by 1.18 million metric tons to 295.35 million metric tons with reductions in Argentina being most noticeable.  Lastly, soybean global ending stocks were seen higher by 290 thousand metric tons, to 100.29 million metric tons.

3 The final chapter of the April WASDE was the USDA acknowledging the reductions necessary to Argentinian production estimates.  While the trade mostly expected this outcome, the trade estimates were for a much smaller reduction.  Argentinian corn was reduced by 3 million metric tons to 37 million, while soybeans were reduced 6 million, to 27 million metric tons.

While this report provides valuable insights into the current state of agricultural markets, it's important to remember that weather and other factors could still impact crop yields and prices in the coming months. As always, farmers and traders should stay informed and vigilant as they navigate these ever-changing market conditions.

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