Wheat Acreage Estimates Released as well as Several Small Changes Made in Latest USDA Supply and Demand Report

The corn balance sheet for the 2015/16 crop saw several changes from the December release. Ending stocks for the 2015/16 crop were revised up by 17 million bushels as a result of lower disappearance. Yields were lowered by 0.9 bu/acre to 168.4 bu/acre, leaving total production down 53 million bushel at 13.601 billion bushels. Feed use and ethanol use were left unchanged. Exports were reduced by 50 million bushels, leaving ending stocks at 1.802 billion bushels. Overall, analysts expected ending stocks to remain unchanged, but the numbers still fell well within the range of analysts’ expectations. Global ending stocks were decreased from 211.85 million metric tons to 208.94 million metric tons with much of the decreased attributed to lower global production.

The soybean balance sheet also had several changed from the December WASDE report. Soybean harvested acres were reduced by 600,000 while yields were lowered by 0.3 bu/acre to 48.0 bu/acre. The decrease in yields and harvested acres left total production 51 million bushels lower than a month ago. Soybean crush was left unchanged, but exports were lowered by 25 million bushels from a month ago, leaving ending stocks 25 million bushels lower at 440 million bushels. This was below analysts’ expectations, as many believed that the numbers would be left unchanged from last month. Global ending stocks were reduced from 82.58 million metric tons to 79.28 million metric tons with a slight decrease in production and an increase in domestic crush numbers.

The 2015/16 wheat crop balance sheet had a few minor changes. Ending stocks for wheat came in at 941 million bushels, which is 30 million bushels higher than last month. Imports were reduced by 5 million bushel, seed use was reduced by 6 million bushel, and the biggest change was a 30 million bushel decrease in feed use. Global wheat ending stocks were increased slightly from 229.86 million metric tons to 232.04 million metric tons. Much of the difference was a result of increased global production and reduced global feed use. In other news regarding wheat, the USDA released the first estimates for winter wheat seedings. Total U.S. winter wheat acreage is down 7% from a year ago at 36.6 million acres while Mississippi acreage is down 33% to 100,000 acres. Last year, Mississippi producers planted 150,000 acres of winter wheat.

The cotton balance sheet saw several revisions this month. Harvested acres were reduced by 70,000 acres from last month while yields were increased by one pound/acre from last month’s estimates. As a result, production was lowered by 90,000 bales from a month ago. Domestic use was reduced by 100,000 bales, while exports were left unchanged, leaving ending stocks up 100,000 bales from a month ago. Global cotton ending stocks reduced by 1.53 million bales as a result of lower production from several major cotton producers.