Several Small Changes in April WASDE Report

The corn balance sheet for the 2015/16 crop saw a few changes in disappearance from the March release. Feed use was reduced by 50 million bushels while ethanol use was increased by 25 million bushels. Ending stocks for the 2015/16 crop were estimated to be 1.862 billion bushels, up 25 million bushels from last month’s estimate. Exports were left unchanged at 1.65 billion bushels. Global ending stocks were increased from 206.97 million metric tons to 208.91 million metric tons with increased global production as well as increased domestic feed use being the primary drivers for the change.

 The soybean balance sheet also very few changes from the March WASDE report. Soybean harvested acres and yields were left unchanged at 81.8 million acres and 48 bu/acre, respectively. Soybean exports were increased by 15 million bushels from a month ago while crush was left unchanged. Ending stocks were 15 million bushels lower at 445 million bushels. Global ending stocks were increased from 78.87 million metric tons to 79.02 million metric tons with much of that decrease coming from a reduction in global soybean crush, particularly in the European Union.

 The 2015/16 wheat crop balance sheet was left mostly unchanged. Feed and residual use was lowered by 10 million bushels, while all other disappearance was left unchanged. Ending stocks for wheat came in at 976 million bushels, up 10 million bushels from a month ago. Global wheat ending stocks were raised from 237.59 million metric tons to 239.26 million metric tons. Much of the difference was a result of decreased global feed use.

 The cotton balance sheet saw a few minor revisions this month. Cotton production was lowered by 50,000 bales as a result of lower yields, production at 12.87 million bales. Domestic use and exports were unchanged from last month, leaving ending stocks unchanged at 3.5 million bales, down 100,000 bales from last month’s estimates. Global cotton ending stocks were reduced by 1.12 million bales as a result of lower global production and lower beginning stocks.

Moving on to markets, corn has rebounded this following the bearish Prospective Plantings report released on March 31. Greenville cash corn is currently trading $0.08 higher than a week ago and $0.25 lower than a year ago at $3.74/bu on Friday. May futures contracts are also $0.08 higher on the week at $3.62/bu. Mississippi producers have 51% of the state’s corn crop in the ground, slightly behind last year’s pace and well behind the 5-year average of 63%.

Soybean markets are lower this week, with Greenville soybeans trading $0.01 lower at $9.24/bu on Friday. A year ago, Greenville soybeans were trading for $9.82/bu. Nearby May soybean futures are trading $0.01 lower than a week ago.

May wheat futures are down $0.16 from a week ago while Greenville wheat prices are also down $0.16 at $4.45/bu on Friday. A year ago, Greenville cash wheat was selling for $5.36/bu. Mississippi’s wheat crop looks good so far this year with only 13% rated poor or very poor and 41% rated good or excellent

Cotton prices finished the week higher with South Delta cash prices trading $0.87/cwt higher than a week ago at $60.07/cwt and $5.41/cwt lower than a year ago. Cotton futures are also higher with May Cotton futures closing at $60.07, up $0.87/cwt from last week. This is the first time cotton has been above $60.00 since mid-February.

For more detail on crop futures and Mississippi local cash prices click here.

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