|Today, markets have been anticipating what has been a slightly bearish WASDE for both corn and soybeans, mostly taking into account previously known stocks and production estimates.|
Canadian wheat production has been downgraded by 2Mt to 21Mt, down from 23Mt in the September WASDE as the drought-impacted crop continues to be quantified. US production too has been revised down to 44.79Mt, down from 46.18Mt as the USDA takes into account the tighter September 1st Stocks data. Overall, a mildly supportive WASDE as known production cuts are made.
Both US beginning stocks and production estimates were increased, with beginning stocks increased to 31.41Mt and production increased to 381.49Mt, up nearly 0.5Mt month on month. Chinese import projections have continued to be estimated at 26Mt.
Like with corn, the major changes have been to US supply, with beginning stocks revised upwards and greater confidence in production. Reflecting the September 1st stocks, starting stocks were revised upwards to 6.97Mt, and production increased to 121.06Mt, up from 119.04Mt.
Overall, a mildly bearish WASDE, but mainly taking into account widely already known factors.
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