Farm Progress America, June 17, 2024

Mike Pearson examines the June WASDE report released last week. The grain report didn't excite the markets, but the livestock report did.

June 17, 2024

Mike Pearson tells listeners about the latest WASDE (World Agriculture Supply and Demand Estimates) report released last week.

The report had few grain surprises in it. Sometimes the reports has news that makes the futures markets move. However, this month's report didn't do that.

On the grain front, the USDA didn't have enough information to change the estimates. The USA is expected 14.86 million bushels of corn, the same as last month.

Wheat had the most bullish news after adverse weather events in the Black Sea region.

Soybeans saw no change in the balance sheet. The only surprise was from Brazil with a smaller than anticipated reduction in production

Livestock is what had the biggest surprises.

Beef production is expected a decline of 5 million pounds for 2024 as slower speeds are slowing down processing. Slower chain speeds at processing facilities are to blame even as carcasses are historically heavy.

A tighter beef supply could support higher prices for the next two quarters.

Pork production is mirrored by beef in the report and it's expected to surge by 100 million pounds.

Carcass weights are growing just like beef and processing chains are slowing.

The report expects 42 more million pounds in 2024.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.

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