January 2017 – Crop Market Update
Author
Published
1/18/2017
On January 12, 2017 USDA released the much anticipated Crop Production, Grain Stocks, and Winter Wheat and Canola Seedings Reports. Combined, the Crop Production and Grain Stocks reports allow USDA to finalize the 2016/17 marketing year crop sizes for corn and soybeans and update the supply and use balance sheets. The production volume and yields for the 2016/17 corn and soybeans crops were record large. Corn production was announced at 15.148 billion bushels with an average yield of 174.6 bushels per acre. Similarly, soybean production was 4.3 billion bushels with an average yield of 52.1 bushels per acre.
The Winter Wheat and Canola Seeding Report provides the first glimpse into the 2017/18 marketing year by identifying hard red winter, soft red winter, and white winter acreage planted. Marketing year average wheat prices have declined 47 percent from the high of $7.77 per bushel set in 2012. Additionally, global wheat supplies have reached a record 253.3 million metric tons. Now with wheat prices at multi-year lows, and cash prices substantially lower in parts of the U.S., U.S. farmers have responded by dedicating the fewest acres to winter wheat since 1909, Figure 1. Total winter wheat acreage planted for 2017 harvest was announced at 32.4 million acres, down 10 percent or 3.8 million acres from 2016. Winter wheat area was 1.7 million acres below the average trade guess of 34.1 million acres. This is the fourth consecutive year that winter wheat seedings have declined.
To view the complete report, please click here.
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