Friday September 10 Crop Production and WASDE

USDA Crop Production - Corn Production Up 2 Percent from August Forecast
Soybean Production Up 1 Percent
Cotton Production Up 7 Percent

Corn production for grain is forecast at 15.0 billion bushels, up 2 percent from the previous forecast and up 6 percent from 2020. Based on conditions as of September 1, yields are expected to average 176.3 bushels per harvested acre, up 1.7 bushels from the previous forecast and up 4.3 bushels from last year. Acreage updates were made in several States based on a thorough review of all available data. Total planted area, at 93.3 million acres, is up 1 percent from the previous estimate, and up 3 percent from the previous year. Area harvested for grain is forecast at 85.1 million acres, up 1 percent from the previous forecast and up 3 percent from the previous year.

Soybean production for beans is forecast at 4.37 billion bushels, up 1 percent from the previous forecast and up 6 percent from 2020. Based on conditions as of September 1, yields are expected to average 50.6 bushels per harvested acre, up 0.6 bushel from the previous forecast and up 0.4 bushel from 2020. Total planted area, at 87.2 million acres, is down less than 1 percent from the previous estimate but up 5 percent from the previous year. Area harvested for beans in the United States is forecast at 86.4 million acres, down less than 1 percent from the previous forecast but up 5 percent from 2020. Acreage updates were made in several States based on a thorough review of all available data.

All cotton production is forecast at 18.5 million 480-pound bales, up 7 percent from the previous forecast and up 27 percent from 2020. Based on conditions as of September 1, yields are expected to average 895 pounds per harvested acre, up 95 pounds from the previous forecast and up 48 pounds from 2020. Upland cotton production is forecast at 18.2 million 480-pound bales, up 8 percent from the previous forecast and up 29 percent from 2020. Pima cotton production is forecast at 335,000 bales, down 10 percent from the previous forecast and down 39 percent from 2020. All cotton planted area totaled 11.2 million acres, down 5 percent from the previous forecast and down 7 percent from 2020. All cotton area harvested is forecast at 9.92 million acres, down 4 percent from the previous forecast but up 20 percent from 2020. Acreage updates were made in several States based on a thorough review of all available data.



World Ag Supply and Demand Report
USDA World Ag Outlook Board - Sept 10, 2021

Note on Ida: This report includes updated production forecasts issued by the National Agricultural Statistics Service which generally reflect crop conditions as of the first day of the month. The supply and demand impacts of transportation and port disruptions caused by Hurricane Ida are presumed to be temporary based on available information as of September 10, 2021.

COARSE GRAINS: This month’s 2021/22 U.S. corn outlook is for larger supplies, increased feed and residual use, greater exports, and higher ending stocks. Projected beginning stocks for 2021/22 are 70 million bushels higher based on a lower use forecast for 2020/21, with reductions in corn used for ethanol and exports. Corn production for 2021/22 is forecast at 15.0 billion bushels, up 246 million from last month on increases to harvested area and yield. The national average yield is forecast at 176.3 bushels per acre, up 1.7 bushels, while harvested area for grain is forecast at 85.1 million acres, up 0.6 million. Total U.S. corn use for 2021/22 is up 150 million bushels to 14.8 billion. Feed and residual use is raised 75 million bushels based mostly on a larger crop and lower expected prices. Exports for 2021/22 are up 75 million bushels to 2.5 billion. With supply rising more than use, ending stocks are increased 166 million bushels to 1.4 billion. The season-average corn price received by producers is lowered 30 cents to $5.45 per bushel.

This month’s 2021/22 foreign coarse grain outlook is for larger production, greater trade, and increased stocks relative to last month. Foreign corn production is forecast higher relative to last month with increases for China and Argentina more than offsetting reductions for Russia and Serbia. China corn production is raised with a boost in yield prospects, based mostly on near to above normal rainfall in the key Northeast provinces of Heilongjiang, Jilin, Inner Mongolia, and Liaoning. Argentina corn production is raised based on expectations of higher area. Foreign barley production is virtually unchanged, as increases for Australia, Ukraine, and the EU are essentially offset by declines for Canada and Russia.

For China, corn feed and residual use for 2020/21 is lowered based on indicated soybean meal equivalent protein consumption and expanded use of alternative energy feedstuffs such as barley and sorghum. For 2021/22, feed and residual use is raised based mostly on a larger crop and lower expected internal market prices. Food, seed and industrial use is lowered for 2020/21 and 2021/22 based on a reduction in the expected amount of corn used for ethanol and corn product exports. Despite a forecast increase in corn production, imports are unchanged for 2021/22 as the gap between China’s domestic and international corn prices is expected to persist, particularly in the feed deficit South.

Major global coarse grain trade changes for 2021/22 include larger corn exports for Argentina, with partly offsetting reductions for Serbia and Russia. Corn imports are raised for Canada and Mexico but are reduced for Vietnam. For 2020/21, for the local marketing year beginning March 2021 corn exports are lowered for Brazil but raised for Argentina. Foreign corn ending stocks for 2021/22 are raised 8.8 million tons to 261.9 million, mostly reflecting an increase for China.

OILSEEDS: U.S. soybean supply and use changes for 2021/22 include higher beginning stocks, production, exports, ending stocks, and lower crush. Higher beginning stocks reflect a lower crush forecast for 2020/21. Soybean production is projected at 4.4 billion bushels, up 35 million with lower harvested area more than offset by a higher yield forecast of 50.6 bushels per acre. Harvested area is down 0.3 million from the August forecast. Soybean crush is reduced 25 million bushels reflecting a lower forecast for domestic soybean meal disappearance. The soybean export forecast is raised 35 million bushels on increased supplies and lower prices. Ending stocks are projected at 185 million bushels, up 30 million from last month. Other changes this month include lower peanut and higher cottonseed production.

Soybean and soybean meal prices for 2021/22 are reduced from the previous forecasts. The U.S. season-average soybean price is forecast at $12.90 per bushel, down 80 cents. The soybean meal price is forecast at $360 per short ton, down 25 dollars. The soybean oil price forecast is unchanged at 65 cents per pound.

The 2021/22 foreign oilseed supply and demand forecasts include higher beginning stocks and lower production, exports, and crush. Foreign oilseed production is lowered 1.5 million tons to 499.8 million mainly on lower canola production for Canada and the EU. Partly offsetting is higher canola output for Australia and higher peanut production for India. Canada’s canola crop is lowered 2.0 million tons to 14 million, reflecting recent government reports.

Lower canola supplies for Canada leads to lower exports of the oilseed and products to the EU, China, and the United States. Lower global rapeseed supply is offset by increased soybean beginning stocks, mainly driven by higher-than-expected 2020/21 imports for China. Higher beginning stocks for China and higher U.S. ending stocks account for most of the global 2021/22 soybean ending stocks increase, which are raised 2.7 million tons to 98.9 million. Another notable oilseed change includes higher soybean meal imports for India as the government allows shipments of soybean meal made from genetically modified soybeans through October 31.

WHEAT: The outlook for 2021/22 U.S. wheat this month is for reduced supplies, slightly higher domestic use, unchanged exports, and decreased ending stocks. Supplies are reduced as imports are lowered 10 million bushels to 135 million on the import pace. Food use is raised 2 million bushels to 964 million, reflecting an upward revision of 2020/21 food use. Exports are unchanged at 875 million bushels but there are offsetting by-class changes. Projected 2021/22 ending stocks are reduced 12 million bushels to 615 million and are 27 percent below last year and the lowest in eight years. The projected 2021/22 season-average farm price is lowered $0.10 per bushel to $6.60 on reported NASS prices to date and price expectations for the remainder of 2021/22.

The global wheat outlook for 2021/22 is for increased supplies, higher consumption, more trade, and higher ending stocks. Supplies are projected rising by 7.1 million tons to 1,072.8 million, on the combination of larger beginning stocks for Canada, EU, and India and higher production for Australia, India, and China. Australia’s production is raised 1.5 million tons to 31.5 million on continued widespread favorable conditions to date. This would be Australia’s third largest wheat crop on record. India’s production is increased 1.5 million tons to 109.5 million on the government’s 4th Advance Estimate and this would be India’s fifth consecutive record crop. China’s production is increased 900,000 tons to 136.9 million, mainly on a higher area estimated by the National Bureau of Statistics. Partially offsetting these increases, Canadian production is lowered 1.0 million tons to 23.0 million, based on the Statistics Canada forecast issued August 30, and Argentina is reduced 500,000 tons to 20.0 million on dry conditions.

Projected 2021/22 world consumption is raised 3.0 million tons to 789.6 million. Most of the higher consumption is for feed and residual use, led by China, increasing by 1.0 million tons to 36.0 million. Projected 2021/22 global trade is raised 1.5 million tons to 199.7 million as higher exports by Australia and India more than offset reduced exports for Canada. Projected 2021/22 world ending stocks are increased 4.2 million tons to 283.2 million with India, EU, and Canada accounting for most of the increase, although global stocks remain below last year.

LIVESTOCK, POULTRY, AND DAIRY: The forecast for 2021 total red meat and poultry production is lowered from last month. Beef production is reduced from the previous month as lower expected steer and heifer slaughter and lighter carcass weights more than offset higher cow slaughter. The pork production forecast is reduced on lower expected second-half hog slaughter. The broiler production forecast is raised on recent hatchery and slaughter data while the turkey production forecast is reduced. The egg production forecast is raised slightly. For 2022, the total red meat and poultry forecast is reduced from the previous month. The beef production forecast is reduced from last month on lower expected fed cattle slaughter and lighter carcass weights. Pork production is unchanged. Broiler and turkey production forecasts are raised on higher expected prices and lower expected feed costs. The 2022 egg production forecast is reduced.

For 2021, the beef import forecast is raised reflecting recent trade data; the export forecast is also raised on strong global demand from key trading partners; no changes are made to the 2022 forecasts. The pork export forecast for 2021 is reduced on recent trade data and expected slower demand growth from Asia; no change is made to the 2022 forecast. Broiler export forecasts are reduced slightly for both 2021 and 2022. The 2021 turkey export forecast is reduced slightly from last month.

Fed cattle prices are raised for 2021 on current price strength and firm demand. The 2022 price forecast is also raised. The 2021 hog price forecast is raised on lower expected production. Broiler and turkey price forecasts are raised for 2021 and 2022 on demand strength.

Milk production forecasts for 2021 and 2022 are reduced from last month on smaller dairy cow numbers and lower milk per cow. For 2021, the fat basis import forecast is unchanged from the previous month, while the fat basis export forecast is raised on strong sales of cheese and butter and milk fat. The skim-solids basis import forecast for 2021 is unchanged from last month, but the export forecast is raised on firm global demand for skim milk powder (SMP), cheese, and whey. For 2022, the fat basis imports are raised on strong demand for imported cheese, while the fat basis export forecast is raised as U.S. butter is expected to be remain competitive in international markets. No change is made to the 2022 skim-solids basis import forecast; however, skim-solids basis exports are raised from last month on continued strong global demand for SMP and whey.

For 2021 and 2022, butter, cheese, nonfat dry milk (NDM) price forecasts are raised on improving demand and lower production. The whey price forecast is unchanged for both years. The 2021 and 2022 Class III and Class IV price forecasts are raised from last month on higher dairy product prices. The 2021 all milk price is forecast higher at $18.15 per cwt. The all milk price forecast for 2022 is $18.40 per cwt.

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