Tidbits
On Friday’s S&D, USDA revised world corn production lower by 2.33 mil mt as production was lowered for Russia, South Africa, Ukraine and Mexico and usage was increased 1.48 mil. mt. An increase to the carryin of 1.37 mil mt. for the current marketing year offset some of lower corn production and higher usage, resulting in world corn carryout down 2.43 mil. mts to 319.63 mil. mts, which is a 5 year high. Average price expected to be paid to farmers for 2023 crop corn was lowered by 5¢ to $4.75.
World wheat carryin was lowered 110,000 mts, production was increased 960,000 mts, and demand increased by 1.46 mil mt. World wheat carryout was lowered by 600,000 mts to 258.83 mil mts. World wheat stocks are the lowest in eight years. With a war in its third year in “The Bread Basket of the World,” wheat should get pricey, but the world does not care.
USDA cut hard red winter wheat exports by 5 million bushels and soft red winter by 10 million bushels. Total US wheat exports were reduced to 710 million. Given US wheat exports tend to rise in the last 3 months of the marketing year, which ends May 31st, USDA may have been premature to lower its wheat exports. USDA also lowered on-farm average wheat price to $7.15 a bushel, down 5¢.