Cash Strategist 2-16-22
Only minimal changes were made to the domestic side of the supply and demand figures last week in the USDA's February World Agricultural Supply and Demand Estimates (WASDE) update.
No changes were made to corn balance sheets, which left ending stocks estimated at 1.54 billion bushels. On soybeans, a 25 million bushel increase in crush put ending stocks at 325 million bushels. Wheat demand was trimmed 3 million bushels for food, 2 million bushels for seed and 15 million bushels for exports to put ending stocks at 648 million bushels.
All of these ending stocks estimates were above the average trade guess. Average cash values for the marketing year are now forecast at $5.45 for corn, $13 for soybeans and $7.30 for wheat.
The area that the trade is focusing on the most with these carryout figures is what the stocks-to-use ratio is on each commodity. Corn now has a stocks-to-use of 10.4% and soybeans are at 7.4%.
These are both just above...
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