January 12 USDA Reports - Crop Production, Grain Stocks, WASDE

USDA Crop Production 2015 Summary
January 12, 2016

Corn for grain production is estimated at 13.6 billion bushels, down slightly from the November forecast and down 4 percent from the 2014 estimate. The average yield in the United States is estimated at 168.4 bushels per acre. This is down 0.9 bushel from the November forecast and 2.6 bushels below the 2014 average yield of 171.0 bushels per acre. Area harvested for grain is estimated at 80.7 million acres, up slightly from the November forecast but down 3 percent from the 2014 acreage.

Soybean production in 2015 totaled a record 3.93 billion bushels, down 1 percent from the November forecast but up slightly from 2014. The average yield per acre is estimated at a record high 48.0 bushels, 0.3 bushel below the November forecast but 0.5 bushel above the 2014 yield. Harvested area is down less than 1 percent from last year's record acreage to 81.8 million acres.

Sorghum grain production in 2015 is estimated at 597 million bushels, up slightly from the November forecast and up 38 percent from the 2014 total. Planted area for 2015 is estimated at 8.46 million acres, up 19 percent from the previous year. Area harvested for grain, at 7.85 million acres, is up 23 percent from 2014. Average grain yield, at 76.0 bushels per acre, is down 1.7 bushels from the previous forecast but up 8.4 bushels from 2014 and represents a record high yield for the United States.

All cotton production is estimated at 12.9 million 480-pound bales, down less than 1 percent from the December forecast and down 21 percent from 2014. The United States yield is estimated at 769 pounds per acre, up 1 pound from the December forecast but down 69 pounds from last year. Harvested area, at 8.08 million acres, is down less than 1 percent from the December forecast and down 14 percent from last year.



USDA Grain Stocks Report - Jan 12, 2016
Corn Stocks Up Slightly from December 2014
Soybean Stocks Up 7 Percent
All Wheat Stocks Up 14 Percent

Corn stored in all positions on December 1, 2015 totaled 11.2 billion bushels, up slightly from December 1, 2014. Of the total stocks, 6.83 billion bushels are stored on farms, down 4 percent from a year earlier. Off-farm stocks, at 4.38 billion bushels, are up 6 percent from a year ago. The September - November 2015 indicated disappearance is 4.12 billion bushels, compared with 4.24 billion bushels during the same period last year.

Soybeans stored in all positions on December 1, 2015 totaled 2.71 billion bushels, up 7 percent from December 1, 2014. Soybean stocks stored on farms totaled 1.31 billion bushels, up 8 percent from a year ago. Off-farm stocks, at 1.41 billion bushels, are up 7 percent from last December. Indicated disappearance for September - November 2015 totaled 1.41 billion bushels, down 6 percent from the same period a year earlier.

All wheat stored in all positions on December 1, 2015 totaled 1.74 billion bushels, up 14 percent from a year ago. On-farm stocks are estimated at 503 million bushels, up 6 percent from last December. Off-farm stocks, at 1.23 billion bushels, are up 17 percent from a year ago. The September - November 2015 indicated disappearance is 359 million bushels, 5 percent below the same period a year earlier.

Durum wheat stored in all positions on December 1, 2015 totaled 60.5 million bushels, up 37 percent from a year ago. On-farm stocks, at 35.7 million bushels, are up 49 percent from December 1, 2014. Off-farm stocks totaled 24.8 million bushels, up 23 percent from a year ago. The September - November 2015 indicated disappearance of 13.5 million bushels is 2 percent below the same period a year earlier.

Barley stored in all positions on December 1, 2015 totaled 181 million bushels, up 16 percent from December 1, 2014. On-farm stocks are estimated at 96.7 million bushels, 30 percent above a year ago. Off-farm stocks, at 84.5 million bushels, are 3 percent above December 2014. The September - November 2015 indicated disappearance is 37.8 million bushels, 60 percent above the same period a year earlier.

Oats stored in all positions on December 1, 2015 totaled 82.9 million bushels, up 24 percent from the stocks on December 1, 2014. Of the total stocks on hand, 36.8 million bushels are stored on farms, up 17 percent from a year ago. Off-farm stocks totaled 46.1 million bushels, up 29 percent from the previous year. Indicated disappearance during September - November 2015 totaled 11.0 million bushels.

Grain sorghum stored in all positions on December 1, 2015 totaled 314 million bushels, up 41 percent from a year ago. On-farm stocks, at 51.5 million bushels, are up 69 percent from December 1 last year. Off-farm stocks, at 263 million bushels, are up 37 percent from a year earlier. The September - November 2015 indicated disappearance from all positions is 301 million bushels, up 23 percent from the same period in 2014.



USDA:  Wheat Planted Acres Down 7 Percent

Winter wheat: Planted area for harvest in 2016 is estimated at 36.6 million acres, down 7 percent from 2015 and 14 percent below 2014. Seeding began in early September and remained at or behind the 5-year average seeding pace through the middle of November when seeding was mostly complete.

Hard Red Winter (HRW) wheat seeded area is expected to be 26.5 million acres, down 9 percent from 2015. Planted acreage is down from last year across most of the growing region. The largest declines in planted acreage are estimated in the Great Plains States. Record low acreage was seeded in Nebraska.

Soft Red Winter (SRW) wheat seeded area is about 6.72 million acres, down 5 percent from last year. Acreage decreases from last year are estimated in most southern SRW growing States, while most of the States in the northern half of the region seeded more acres than in 2015. Record low acreage was
seeded in New Jersey.

White Winter wheat seeded area totals nearly 3.43 million acres, up 1 percent from 2015. Planting in the Pacific Northwest got off to a normal start, but by the middle of October, progress was behind the 5-year average pace in Idaho and Washington. By November 9, seeding was virtually complete in the region.

Durum wheat: Seedings in Arizona and California for 2016 harvest are estimated at a combined 140,000 acres, down 33 percent from 2015 but 20 percent above 2014. No major problems in the development of the crop have been reported. Favorable planting conditions were reported in the San Joaquin Valley and Imperial Valley.



USDA World Ag Supply and Demand Estimates - Jan 12, 2016

COARSE GRAINS: U.S. feed grain supplies for 2015/16 are lowered as small increases in corn and sorghum imports and sorghum production are more than offset by a reduction in corn production. Harvested area for corn is raised slightly, but the national average yield is estimated 0.9 bushel per acre lower than the previous forecast at 168.4 bushels per acre. Corn production for 2015/16 is estimated 53 million bushels lower, but remains the third largest crop on record at 13.6 billion. Sorghum production is estimated 3 million bushels higher as an increase in harvested area more than offsets a reduction in yield.

Total projected corn use for 2015/16 is reduced slightly with lower projected food, seed, and industrial use and exports. Feed and residual use is unchanged as September-November disappearance, as indicated by the December 1 stocks, was largely in line with expectations. Corn used to produce ethanol is unchanged, but projected use for sweeteners is lowered 10 million bushels. Exports are lowered 50 million bushels based on the slow pace of sales and shipments to date and continued strong competition from South American suppliers. Corn ending stocks are projected 17 million bushels higher at 1.8 billion bushels, stocks remain the highest since 2005/06. The projected range for the 2015/16 season-average corn farm price is lowered 5 cents on each end to $3.30 to $3.90 per bushel reflecting weakness in export demand and recent declines in cash and futures prices. The sorghum farm price is lowered 20 cents at the midpoint to a range of $3.05 to $3.55 per bushel reflecting the weakening relationship to cash corn prices in interior markets.

Global coarse grain supplies for 2015/16 are projected 6.8 million tons lower mostly on lower corn production for South Africa and the United States and lower rye production for Russia. Foreign coarse grain supplies are lowered 5.9 million tons. Corn production is lowered 4.0 million tons for South Africa as continued heat and dryness during December further reduced prospects for area and yields, particularly in the western producing areas where satellite imagery suggests much of this year’s crop may not have been planted. Russia corn production is lowered 0.5 million tons with reductions in area and yields, but an area increase for Ukraine corn raises production an offsetting 0.5 million tons. Other corn production changes include small reductions for China and Peru. Reductions in rye and oats production for Russia more than offset an increase for barley.

Global coarse grain consumption for 2015/16 is reduced with the biggest reduction for Russia, down 1.2 million tons with lower rye, oats, and corn consumption reflecting tighter supplies with the smaller crops. Corn consumption for South Africa is lowered 0.7 million tons with reduced supplies. Corn consumption is also lowered for Saudi Arabia, Argentina, and Pakistan. Global coarse grain imports for 2015/16 are raised with increases for South Africa, Mexico, and Peru corn more than offsetting reductions in corn imports for China and Saudi Arabia. Corn exports are raised for Brazil, Mexico, and Ukraine, but lowered for South Africa, India, and Russia. Corn exports are also raised for Argentina and Brazil for the 2014/15 (March 2015 through February 2016 local year) further reducing prospects for 2015/16 U.S. corn exports (September 2015 through August 2016). Global 2015/16 corn ending stocks are projected 2.9 million tons lower with reductions for Brazil, China, South Africa, Pakistan, Russia, Argentina, and Saudi Arabia. World corn ending stocks remain record large at 208.9 million tons; however, more than half of those stocks are held in China.

OILSEEDS: U.S. oilseed production for 2015/16 is estimated at 116.2 million tons, down 1.5 million from last month. Smaller crops for soybeans, canola, and cottonseed are only partly offset by increases for sunflowerseed and peanuts. Soybean production is estimated at 3,930 million bushels, down 51 million on lower harvested area and yields. Harvested area is estimated at 1.8 million acres, down 0.6 million from the previous forecast. Yield is estimated at 48.0 bushels per acre, down 0.3 bushels, but still a record. With lower supplies, exports are reduced 25 million bushels to 1,690 million. Ending stocks are projected at 440 million bushels, down 25 million from last month. Although soybean crush is unchanged, soybean meal production is reduced on a lower extraction rate. Soybean meal exports are reduced on a slowing pace of sales and increased competition from Argentina. Soybean oil balance sheet changes include increased production on a higher extraction rate, increased imports, and increased domestic use.

The 2015/16 U.S. season-average farm price forecast for soybeans is projected at $8.05 to $9.55 per bushel, down 10 cents at the midpoint based on prices reported to date. Soybean meal is forecast at $270 to $310 per short ton, down 20 dollars on both ends. The soybean oil forecast is unchanged at 28.5 to 31.5 cents per pound.

Global oilseed production for 2015/16 is projected at 526.9 million tons, down 2.0 million with lower forecasts for soybeans, sunflowerseed, peanuts, and cottonseed. Global soybean production is projected at 319.0 million tons, down 1.1 million on smaller crops in the United States and South Africa. Larger soybean production in China is partly offsetting. Global sunflowerseed production is reduced with lower projections for Argentina and South Africa partly offset by an increase for Russia. Other changes include reduced cottonseed production for China, India, and Pakistan.

Global oilseed trade for 2015/16 is projected at 148.0 million tons, up 0.3 million from last month.
Increased soybean exports for Argentina and increased soybean and rapeseed exports for Canada more than offset lower U.S. soybean exports. Global oilseed crush is projected higher mainly on increased soybean crush for Argentina, China, and Vietnam and increased rapeseed crush for Canada and China. Global oilseed stocks are projected at 90.9 million tons, down 4.2 million on reduced soybean stocks for the United States, Argentina, and China, and reduced rapeseed stocks for Canada.

WHEAT: Feed and residual use for 2015/16 is lowered 30 million bushels reflecting disappearance for June-November as indicated by the December 1 stocks released in the Grain Stocks report. Seed use is lowered 6 million bushels on the winter wheat planted area reported today in the Winter Wheat Seedings report. U.S. supplies for 2015/16 are lowered 6 million bushels on reduced imports and slightly lower beginning stocks. Projected 2015/16 ending stocks are raised 30 million bushels. The 2015/16 season average farm price range is narrowed 10 cents on both the high and low ends to $4.90 to $5.10 per bushel.

Global wheat supplies for 2015/16 are raised 1.2 million tons on both increased beginning stocks and production. World wheat production remains record high and is raised 0.5 million tons led by 0.5-million-ton increases for both Russia and Pakistan and a 0.3-million-ton increase for the EU. Partly offsetting is a 0.7-million-ton reduction for Uruguay and a 0.4-million-ton reduction for Brazil; both reductions are on updated government statistics and reflect crop damage from excessive rain. World wheat trade for 2015/16 is down fractionally with several, mostly offsetting, changes. Global use is reduced, mostly in the United States. With supplies increasing and use reduced, ending stocks are raised 2.2 million tons to a record 232.0 million tons. This total is 9 percent larger than the previous stocks record set last year.

LIVESTOCK, POULTRY, AND DAIRY:
The estimate of 2015 total meat production is lowered from last month as lower pork, broiler, and turkey production more than offsets higher beef production. For 2016, the forecast is raised as higher pork, broiler, and turkey production more than offsets lower forecast beef production. Higher cattle slaughter in late 2015 resulted in a higher beef production estimate, but lower-than-expected cattle placements in late 2015 are expected to result in lower fed cattle marketings and slaughter in 2016 and the beef production forecast for 2016 is lowered. USDA will release its semi-annual Cattle report on January 29, providing estimates of heifers held for breeding and an insight into the number of cattle which might be available for placement during 2016. Pork production for 2015 is lowered as end of year slaughter was lower than expected. Pork production is increased slightly for 2016. The
Quarterly Hogs and Pigs report, released on December 23, indicated that producers intend to farrow slightly fewer sows on average during the first half of 2016, which may limit growth in the pig crop despite growth in pigs per litter. However, higher carcass weights will support increased pork production. Broiler production is lowered for 2015 based on slaughter and hatchery data, but the forecast for 2016 is raised primarily on higher forecast broiler prices. Turkey production is raised for both the end of 2015 and early 2016 on slaughter and hatchery data. Egg production for 2015 and 2016 is unchanged.

Beef imports for 2015 and 2016 are reduced, reflecting the pace of trade to date and relatively weak prices for processing beef. Beef exports for the last quarter of 2015 and early 2016 are raised on gains in sales to a number of markets. Pork imports and exports are unchanged from last month. Broiler and turkey exports for 2015 and 2016 are reduced from last month as the export recovery has been slower than expected.

Livestock and poultry prices for 2015 are adjusted for December data. For 2016, no change is made to the cattle price forecast. The 2016 hog price forecast is reduced as large supplies of hogs and competition from other meats pressured prices in late 2015 and is expected to pressure prices in early 2016. Broiler prices improved in late 2015 and early 2016 and the price forecast for 2016 is raised. Egg prices are lowered for 2016 reflecting recent price movements.

Milk production for 2015 is raised on slightly stronger growth in milk per cow. Forecast 2016 milk production is reduced from last month. Cow numbers are lowered due to lower expected milk prices and the recent blizzard in Texas and New Mexico. Growth in milk per cow is reduced on lower milk prices. Exports are lowered on both a fat- and skim-solids basis as global supplies of dairy products remain large and demand remains relatively weak. Continued strength in domestic butter use will also limit the competitiveness of U.S. butter in world markets. Fat and skim solid-basis imports for 2015 are unchanged. For 2016 both fat and skim-solids imports are raised largely on higher cheese imports.

Dairy product prices for 2015 are adjusted for December data. For 2016, butter prices are raised from last month on relatively strong demand and lower expected production. Cheese, nonfat dry milk (NDM), and whey prices are reduced. Relatively large beginning stocks of cheese and weaker beginning year prices underlie the reduction in the cheese price forecast. NDM and whey prices are expected to be pressured by weakness in exports. The Class III price for 2016 is lowered on lower cheese and whey prices and the Class IV price is reduced as a lower NDM price more than offsets a higher butter price. The all milk price is lowered to $15.35 to $16.15 per cwt for 2016.