March 9 WASDE report issued

BLOOMINGTON – Wednesday’s March WASDE report from USDA was not overly bearish but not outstandingly bullish for markets either.

For the U.S. balance sheets, corn carryout came down as a result of higher exports and projected higher ethanol usage. Soybean carryout was cut by 40 million bushels.

“That was based on better export potential,” said Joe Camp of CommStock on the CIFN Midday Update.

Ending stocks were slightly higher for wheat which went against trade expectations leading to a more bearish fashion.

“Wheat is going to be influenced heavily by what is going on in Russia and Ukraine,” Camp explained. “We should see further balance sheet adjustments related to that in future reports.”

Camp anticipates better export potential down the road and USDA did reflect that on both corn and soybeans. Corn is seeing lesser flow out of the Black Sea region and South America. The soybean South American production estimate did go lower by a considerable amount.

Wheat led the way lower Wednesday while corn tagged along with softer prices and soybeans were split with slightly firmer prices as the higher oil market was helping there.

The March WASDE report is not as important as the end of the month Prospective Plantings report from USDA. That report provides a look into what farmers intend to plant in 2022. Also on March 31, USDA will release the Grain Stocks report for the previous quarter.

“Pretty soon after the Prospective Plantings report, we’ll be very quickly into the production season,” added Camp.