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June WASDE Reflects Weather Challenges



(NAFB)--According to American Farm Bureau Federation analysis - the latest World Agricultural Supply and Demand Estimates report reflects the slow corn planting season across much of the Corn Belt. Farm Bureau notes later-planted corn faces the risk of pollination during seasonally warmer temperatures and drier weather expected in late July - which could reduce the yield. The June WASDE report lowered its yield projection 1.5-bushels per acre from May to 156.5-bushels per acre for 2013. Still - the corn production estimate at just above 14-billion bushels - a reduction of 135-million bushels - would be record setting if realized. Projected corn use was also reduced by 70-million bushels. Farm Bureau Economist Todd Davis says the report still predicts ending stocks to build significantly over the 2012-13 marketing year levels. According to Davis - June’s WASDE projects corn stocks are greater than the pre-report estimates - which reflects negatively on the corn market. He says the projected increase in stocks will cause marketing-year prices to drastically fall to $4.80 per bushel - compared to $6.95 per bushel in the 2012-13 marketing year.

As the World Agricultural Outlook Board awaits the release of the acreage survey on June 28th - the report showed no change in planted or harvested acres for corn or soybeans. Davis says trade projections are that about two-million acres will not be planted to corn this year due to the late season rains and unusually cold weather. He says the expectation is that soybean planted acres will increase as farmers plant soybeans instead of late planted corn. U.S. soybean ending stocks are still expected to more than double from 125-million bushels in the 2012-13 marketing year to 265-million bushels in 2013-14. That increase will drop the 2013-14 projected soybean price to $10.80 per bushel - a decline from $14.35 in the 2012-13 marketing year.

Farm Bureau’s Davis says the weather will keep the market captivated during the next three months in an attempt to better understand what proportion of the crop was planted later than normal and is at risk of pollinating during adverse conditions. 


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