Supply and Demand Report Recap

John M. Riley, Extension Economist
By John M. Riley, Extension Economist June 10, 2011 16:52

On Thursday the United States Department of Agriculture released its monthly World Agricultural Supply and Demand report (WASDE).  The June report was the second that revealed projections regarding the current growing season for crops.  The report continued the ongoing theme of tight supplies for crops.  However, projections for corn and soybeans went in opposite directions both in the numbers reported and the reasoning behind them.  With corn, ending stocks for the 2011/12 marketing year were lowered to 645 million bushels (mb) compared to 900 mb in last month’s projection – the first for the 2011/12 marketing year.  The reasoning behind the drop is the delayed progress of the 2011 corn crop for the majority of the corn acres.  Yield per acre for corn was unchanged since there is a lot of time for the crop actually in the ground to recover, but the number of acres were lowered as it is expected that acres will be lost due to flooding of the Mississippi, Missouri, and Ohio rivers.  The number of these lost acres that will be switched to beans, however, is still uncertain and as such soybeans acres and yield were left unchanged from last month’s projections for the 2011/12 marketing year.  The increase in ending stocks for 2011/12 soybeans were a result of increased carry-in from 2010/11 and from lower exports projected for 2011/12.  Ending stocks for soybeans in the 2011/12 year were projected at 190 mb compared to 160 in May’s report.

Cotton projections revealed the concern of lost acres due to the extreme drought conditions present in the Southern Plains.  The direct implications were evident in that planted acres were unchanged but abandonment is expected to be higher resulting in less acres harvested – currently projected at 10.2 million versus 10.8 last month.  The ending stocks for the 2011/12 marketing year were unchanged though, at 2.5 million bales, as more stocks are expected to be carried over from the current marketing year and exports were reduced slightly given the fact that cancelations are starting to crop up as a result of the higher price of cotton, timid demand and a rising U.S. dollar.

Print Friendly
John M. Riley, Extension Economist
By John M. Riley, Extension Economist June 10, 2011 16:52
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment
View comments

Write a comment

Your e-mail address will not be published.
Required fields are marked*

Subscribe to receive updates

  • 2015 Delta Area Rice Growers Meeting: November 5, 2015

    The 2015 Delta area/Bolivar Co. Rice Meeting will be held at the Bolivar Co. Extension office on November 5, 2015. Mississippi rice producers, industry professionals, and other interested parties are ...
  • 2015 Rice On-Farm Variety Trial Preliminary Data

    Find below the Preliminary version of the 2015 On-Farm Rice Variety Trial. During 2015, small plot rice variety trials were conducted near the following locations; Choctaw, Clarksdale, Hollandale, Ruleville, Shaw, ...
  • 2015 MSU Short List of Suggested Wheat Varieties

    This publication lists those wheat varieties which have demonstrated superior productivity in the Mississippi Wheat and Oat Variety Trials and summarizes their characteristics. This impartial information should help you better assess wheat varieties which are best suited for your farm. ...
  • 2015 Cotton Varieties Planted Report

    The United States Department of Agriculture – Agriculture Marketing Service released the 2015 Cotton Varieties Planted Report on September 15, 2015.  Mississippi cotton growers planted 29% of the total state ...
  • Are Late-Season Soybean Rust Observations Important?

    Late-season soybean rust observations occur on almost an annual basis. Even though the majority of the soybean crop has escaped yield loss as a result of soybean rust again for the 2015 season, determining the extent of the disease in MS as well as potential locations where the fungus could overwinter continue to be an important part of the ...
  • Burning Stalks – What does it Really Cost?

    After harvest, you immediately face management decisions as you begin preparing fields for next year's crop. Corn produces far more residue than most crops we are accustomed to, so it can cause considerable benefits or anxiety depending upon how you view it. This article addresses the pro's and con's of crop residue and associated management options, including burning. ...

More Info By