Record Crop Consumption Could Move Even Higher
John Newton, Ph.D. firstname.lastname@example.org (202) 406-3729
Now that 2016/17 marketing year crop sizes for corn and soybeans are known, many in the trade are now turning their attention to the pace of consumption. The February 9 USDA World Agricultural Supply and Demand Estimates (WASDE) projected total corn consumption at a record 14.62 billion bushels, up 7 percent from last year. Soybean consumption was projected at a record 4.108 billion bushels, up 4 percent from last year. Data driving these consumption totals include ethanol production, soybean crush, grain and oilseed exports, and feed and residual use.
In order to update old-crop price expectations for the remainder of the marketing year the markets will follow weekly and monthly consumption data for signs that the pace of consumption is accelerating or that it may fall short of the WASDE projections. Exports and ethanol production data are updated weekly, crushing information is updated monthly, and expectations on feed and residual use can be updated quarterly with the grain stocks reports.
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