Carl German, Extension Crops Marketing Specialist; clgerman@udel.edu
USDA’s May Supply & Demand Report Reflects Bullish Tone
USDA’s first official estimate of world grain markets for the ’09/’10 marketing year was released on Tuesday morning, May 12. Overall the report was viewed as bullish for three reasons: U.S. supplies of soybeans are projected to drop near pipeline levels for the current ’08/’09 marketing year; winter wheat production will be lower this year; and U.S. and world corn ending stocks were lowered for the ’08/’09 marketing year. Further, world corn ending stock projections for the ’09/’10 marketing year are currently estimated to be roughly 10 million metric tons less than carry-out stocks for the current marketing year. Projections for the ’09/’10 marketing year were also noted to be below pre-report expectations for corn, wheat, and soybeans.
Marketing Strategy
This report, along with planting delays, should provide opportunities for advancing sales for both old crop and new crop corn, soybeans, and wheat providing outside market forces hold up. For example, weakness in the Dow and world markets over rode the bullish tone in Tuesday’s supply and demand report in yesterday’s trading. World ending stocks are projected to increase for ’09/’10 marketing year wheat and soybeans, with corn stocks decreasing as stated above. Currently, nearby corn, soybean, and SRW wheat futures are trading at $4.19; $11.50; and $5.78 per bushel. New crop corn, soybean, and SRW wheat futures are trading at $4.47; $9.81; and $6.69 per bushel.
For technical assistance on making grain marketing decisions contact Carl L. German, Extension Crops Marketing Specialist.