Key Takeaways from the WASDE Report
The November WASDE report provides a detailed analysis of agricultural commodities, reflecting production, consumption, and trade changes. The report shows:
- A general trend of increased production in several commodities.
- Adjustments in domestic use and exports based on the latest data.
- Price adjustments reflect current and anticipated market conditions.
- Global events, such as weather conditions and harvest data, significantly impact supply and demand dynamics.
Wheat: Adjusted Supply and Demand
- U.S. Wheat: Increased supplies, decreased domestic use, unchanged exports, and higher ending stocks. Imports increase due to a strong pace and expectations, while food use decreases.
- Global Wheat: Supplies are up slightly, with consumption slightly down, trade reduced, and stocks larger. An increase in Russia’s production partially offsets notable production decreases in several countries.
Coarse Grains: Corn Production and Global Changes
- U.S. Corn: Forecast for larger production, domestic use, exports, and ending stocks. Production is up due to increased yield estimates, with corresponding rises in feed, residual use, and ethanol use.
- Global Coarse Grains: Production forecast increased, with notable changes in foreign production and trade adjustments. Ukraine and Russia’s production is raised, while Mexico’s is lowered.
Rice: U.S. and Global Outlook
- U.S. Rice: Slight decrease in supplies, with unchanged exports and domestic use, and reduced ending stocks due to lower production.
- Global Rice: Higher supplies, consumption, and trade, with nearly unchanged stocks. India’s beginning stocks are raised, affecting global consumption and trade projections.
Oilseeds: Soybean Market Projections
- U.S. Soybeans: Increased production and ending stocks, with unchanged crush and exports. Production is up due to higher yields.
- Global Soybeans: Lower beginning stocks, higher production, higher crush, and lower ending stocks. Production increases in Russia, Ukraine, and the U.S. are noted.
Sugar: Mexican Production and U.S. Adjustments
- Mexico: Reduced production due to drought conditions, affecting other components of supply and use.
- U.S.: Increased supply on lower beginning stocks and imports offset by more lavish production. Adjustments made to imports and production forecasts based on recent data.
Livestock, Poultry, and Dairy: Price and Production Forecasts
- Red Meat and Poultry: Lower production forecast with reductions across beef, pork, broiler, and turkey.
- Dairy: Reduced milk production forecast for 2023, with adjustments into 2024. Price forecasts for various dairy products are adjusted based on market conditions.
Cotton: U.S. and Global Market Changes
- U.S. Cotton: Slightly lower consumption, higher production, and ending stocks. Production is up, but domestic mill use is down.
- Global Cotton: Lower consumption but higher production and stocks. Production forecasts are adjusted for several countries, with a net increase globally.
To read the more detailed November WASDE report, click here.