Latest WASDE - January 10th Created by rrummel on 1/11/2014 10:37:25 AM
Highlights for Grains and Livestock
COARSE GRAINS: U.S. feed grain supplies for 2013-14 are projected lower with reduced production estimated for corn and sorghum. Harvested area for corn is raised 436-thousand acres - but the estimated yield is lowered 1.6-bushels per acre to 158.8,-reducing production 64-million bushels to 13.9 billion. Sorghum harvested area is lowered 148-thousand acres and the yield is lowered 2.6-bushels per acre - reducing production 27-million bushels. Projected corn use for 2013-14 is raised with feed and residual use projected up 100-million bushels based on September-November disappearance as indicated by the December 1 stocks estimate. Corn used to produce ethanol is raised 50-million bushels reflecting continued strong weekly ethanol production, a reduction in expected sorghum use for ethanol and higher forecast 2014 gasoline consumption in the latest projections from the Energy Information Administration. A 50-million bushel reduction in other food, seed and industrial use offsets the increase in use for ethanol. Corn ending stocks for 2013-14 are projected 161-million bushels lower at 1.6-billion. The projected 2013-14 season-average farm price for corn is unchanged at the midpoint with the range narrowed to $4.10 to $4.70 per bushel. Other 2013-14 feed grain changes include increases in projected feed and residual disappearance for sorghum and oats - but a reduction for barley as indicated by December 1 stocks. Sorghum exports are projected 20-million bushels lower as higher indicated September-November disappearance limits exportable supplies. Sorghum food, seed and industrial use is also lowered 20-million bushels.
Global coarse grain supplies for 2013-14 are projected 1.2-million tons higher despite this month’s reduction in U.S. production and a 1.9-million ton decrease in global beginning stocks. Global barley production for 2013-14 is raised 1.6-million tons. Foreign corn production is raised 4.3-million tons. Global 2013-14 coarse grain consumption is raised 4.2-million tons. World corn trade for 2013-14 is lowered with a 2.0-million ton reduction in imports expected for China. Recent rejections of U.S. corn shipments by China and larger domestic corn supplies in China are expected to limit imports during the 2013-14 marketing year. Global corn ending stocks are projected 2.2-million tons lower.
OILSEEDS: U.S. oilseed production for 2013-14 is estimated at 97.3-million tons - up 0.9-million tons from last month. Larger crops for soybeans, cottonseed and peanuts are partly offset by reductions for sunflowerseed and canola. Soybean production is estimated at 3.289-billion bushels - up 31-million bushels based on increased yields and harvested area. The soybean yield is estimated at 43.3-bushels per acre - up 0.3-bushels from the previous estimate. Soybean crush is raised 10-million bushels to 1.700-billion reflecting higher projected soybean meal exports. Soybean exports are increased 20-million bushels to 1.495-billion reflecting record shipments during the first quarter of the marketing year and strong sales through December. Soybean ending stocks for 2013-14 are projected at 150-million bushels - unchanged for last month. Soybean oil balance sheet changes include increased production on a higher crush and extraction rate, reduced imports, increased projected exports and increased ending stocks. The 2013-14 U.S. season-average farm price forecast for soybeans is narrowed 25-cents on both ends of the range to $11.75 to $13.25 per bushel based on prices reported to date. The soybean oil price is forecast at 35.5 to 39.5-cents per pound - down 2.5-cents on both ends. The soybean meal price is projected at $415 to $455 per short ton - up 15-dollars on both ends of the range.
Global oilseed production for 2013-14 is projected at a record 505.9-million tons - up 3.6 million. Global soybean production is projected at 286.8-million tons - up 1.9-million. Global sunflowerseed production is raised 1.3-million tons to 43.7-million. Global oilseed trade for 2013-14 is projected at 128.9-million tons - up slightly from last month. Global oilseed ending stocks are projected at 85.1-million tons - up 2.3-million from last month.
WHEAT: U.S. wheat supplies for 2013-14 are unchanged this month - but lower expected use raises projected ending stocks 33-million bushels. Feed and residual use is lowered 60-million bushels reflecting disappearance for June-November as indicated by the December 1 stocks released in the Grain Stocks report. Feed and residual use is lowered for Hard Red Winter (HRW) and Hard Red Spring and Soft Red Winter wheat. Seed use is raised one-million bushels based on the winter wheat planted area reported in the Winter Wheat Seedings report. Wheat exports are projected 25-million bushels higher. The 2013-14 season-average farm price is projected 10-cents lower at the midpoint with the range narrowed to $6.60 to $7.00 per bushel.
Global 2013-14 wheat supplies are raised 1.5-million tons to 888.8-million. Global wheat trade for 2013-14 is raised. Foreign wheat feeding is lower. Global wheat ending stocks are projected 2.6-million tons higher.
LIVESTOCK, POULTRY, AND DAIRY: The forecasts for total red meat and poultry production for both 2013 and 2014 are lowered from December. For 2013 - beef production is raised - but pork, broiler, and turkey production are reduced. The forecast for 2014 is reduced as lower pork and turkey production more than offset an increased beef production forecast. The Quarterly Hogs and Pigs report released on December 27 indicated that the September-November pig crop was fractionally below a year earlier - which will constrain supplies of slaughter hogs in early 2014. Although producers intend to farrow more sows in the first half of 2014 - the impacts of the Porcine Epidemic Diarrhea virus (PEDv) will likely slow growth in pigs per litter and keep supplies of market hogs relatively tight during 2014. Beef production is raised for 2014 as higher-than-expected placements in the later part of 2013 and expected availability of winter pasture support increased cattle marketings and slaughter during the year. No change is made to 2014 broiler production. Egg production is reduced slightly for 2013 and 2014.
Beef imports are unchanged for 2013 - but are raised slightly for 2014. Beef exports are raised for both 2013 and 2014 as the pace of exports over the past several months has been strong. Pork imports and exports for both 2013 and 2014 are unchanged from last month. The 2013 broiler export forecast is raised slightly based on exports to date - but the forecast for 2014 is unchanged. Turkey exports for 2013 and 2014 are unchanged from last month. Animal product prices for 2013 are adjusted based on December data. For 2014 - the cattle price forecast is raised from last month as demand for fed cattle remains strong. Hog prices are raised as the production forecast is lowered. Broiler and turkey price forecasts are raised from last month. Demand for broiler meat is firm - supported by tight supplies of beef. Turkey prices are expected to be supported by lower forecast production in early 2014. Egg prices are forecast higher - reflecting current price strength.
The 2013 milk production estimate is reduced from last month - based on recent milk production data. The forecast for 2014 is raised - as improving returns are expected to support a more rapid increase in output per cow. Fat basis imports are reduced for 2013 and 2014 on lower expected imports of butterfat. On a skim-solids basis - imports are reduced slightly for 2013 but are unchanged for 2014. Fat basis exports are raised for both 2013 and 2014 on relatively strong demand for cheese and other products. Skim-solids exports are reduced slightly for 2013 as NDM exports lagged in November. However - exports are expected to strengthen in 2014 and the skimsolids export forecast is raised. Dairy product and milk prices for 2013 are adjusted to reflect December data. For 2014 - cheese, butter and nonfat dry milk (NDM) prices are raised as export and domestic demand are expected to strengthen - but the forecast for dry whey is unchanged. The Class III price is raised due to the higher cheese prices and the Class IV price forecast reflects higher butter and NDM prices. The all milk price is forecast at $20.60 to $21.40 per cwt for 2014.