World Agricultural Supply and Demand Estimates: Market Reactions and Crop Ratings - Business

Corn , Soybean , and Wheat Production Projections

The United States Department of Agriculture ( USDA ) recently released the World Agricultural Supply and Demand Estimates , providing crucial information on corn , soybean , and wheat production . The national corn yield has been increased to a record 183.1 bushels per acre , with production projected at 15.147 billion bushels for the upcoming year . Additionally , soybean farmers are expected to grow a record crop of 4.589 billion bushels , with a yield forecast of 53.2 bushels per acre . Ending stocks for the new - crop marketing year are projected at 560 million bushels , the highest in six years.

 Globally , USDA pegs 2024 - 25 production at 1,219.82 million metric tons for corn and 134.3 million metric tons for soybeans.

The global ending stocks for the 2024 - 25 season have increased alongside higher U.S. crop estimates . The world ending stocks for wheat in 2024 - 25 were pegged at 256.62 million metric tons , with global production projected at 798.28 million bushels . The USDA lowered its forecast for wheat production to 1.98 billion bushels , reflecting a 26 million bushel cut.

Market Reactions and Crop Ratings

Market reactions to the USDA reports have been observed in the trading of corn , soybeans , and wheat futures . December corn and November soybeans experienced declines , while September wheat contracts were also in the red . The USDA announced purchases of corn and soybeans for the new marketing year by unknown destinations . Traders are closely monitoring the August WASDE report for potential impacts on market trends.

 Arlan Suderman , chief commodities economist at StoneX , highlighted the significance of the August report in determining market bottoms.

As crop yield projections are expected to increase , traders are waiting for more clarity on this year 's crop size . Additionally , the USDA 's weekly Crop Progress report , including crop condition ratings for corn and soybeans , is anticipated to provide further insights into crop development.

Livestock Market Trends

In the livestock sector , beef production for 2024 is forecasted to increase , leading to higher steer prices . Pork production projections , on the other hand , have been revised downwards due to expected reductions in slaughter speeds and dressed weights . Market projections for hog prices in the third and fourth quarters of 2024 have been mixed , reflecting ongoing complexities in the pork and hog markets.

 Al Kluis , managing director of Kluis Commodity Advisors , emphasized the importance of monitoring U.S. corn and soybean crop ratings.

With high crop ratings and yield projections on the rise , analysts are closely watching for potential impacts on market dynamics . Livestock futures , such as October live cattle and September feeder cattle , have experienced fluctuations in response to market developments.

As the agricultural landscape continues to evolve , market participants are navigating through changing production forecasts , global supply and demand dynamics , and external factors influencing commodity prices . Stay tuned for further updates and insights on agricultural market trends.