Grain Prices React Mixed to May USDA Supply, Demand Report

Corn futures fell after the May USDA National Agricultural Statistics Service (NASS) World Agricultural Supply and Demand Estimates (WASDE) report was released Wednesday morning. That’s largely based on a fairly static crop size estimate combined with an expected decline in corn export demand. The opposite was true for soybeans; Wednesday’s WASDE report showed continued surging export demand, mainly to China, and combined with expected production shortfalls in the U.S. and other key soybean-growing regions, the market reacted with double-digit price gains. Winter wheat futures followed corn prices lower Wednesday after the WASDE report showed strong and improving crop conditions. Moving forward, crop weather in the U.S. and abroad — specifically how drought could affect crop establishment at home and in major competitors like Brazil — will be key variables to watch as U.S. corn and soybean planting races to its finish line. See more on Wednesday’s report.