"We look for USDA to solve the question of lower corn production on Friday," said Rich Nelson, Allendale chief strategist. "The real question is how they handle the mounting evidence of demand problems. Whether it is shown on Friday, or in future reports, we look for significant declines in demand to be recognized."
Corn
Allendale estimates that ending stocks will be raised and expects lower production using 86.185 million harvested and a 123.2 yield. Compared to USDA, Allendale sees feed use -50 million bushels, ethanol -50 million, and exports -100 million. Argentina production is expected to be lowered 0.5 to 27.0 mt. Brazil is expected to be left at USDA's 77.0 mt.
Soybeans
Ending stocks are expected to be raised. Allendale raises production to 75.582 million harvested and a 39.4 bushel/acre yield. Crush is unchanged and exports are expected to be lowered 5 million. Argentina and Brazil are unchanged at 55 and 81 mt.
Wheat
Ending stocks are left unchanged. Allendale expects winter wheat plantings will increase 2.1 million.
