April WASDE Report ?kind of a dud,? analyst says

by | Apr 9, 2021 | 5 Ag Stories, News

The U.S. Department of Agriculture released the April WASDE Report late Friday morning.

In the report, the USDA set corn stocks at 1.352 billion bushels, down from 1.502 billion last month. Soybean stocks were unchanged at 120 million bushels and wheat stocks rose to 852 million bushels, an increase from last month?s 836 million. Allendale commodity broker Greg McBride describes the April WASDE Report as:

?Kind of a dud,? he said. ?We got exactly what we wanted out of the beans. We decreased ending stocks by a million bushels which is really nothing in the grand scheme of things. We know we?ve got tight ending stocks, but that doesn?t go very far to feed the bull. We?re just kind of sitting stagnant and then you see that USDA raised Brazil?s soybean stock by another 2 million metric tons. That puts a little more of a bearish lean to it, but at this point, all we?re doing is cycling back to the lower end of the recent range.?

McBride says corn markets initially had a strong reaction when the report came out.

?Corn actually got about 150 million bushels lower than where they were at in March which was about 50 million bushels better than the average guess at 1.352 billion bushels. That looks really good for us,? McBride said. ?We saw nice strong reactions getting us up to $5.95 on the May contract. It actually took that December new crop contract above $5 for the first time before backing off and just slowly leaking away. We?ve kind of taken some of the excitement out of the market and the beans have continued to back off to the lower end of their range.?

To view USDA?s full April WASDE Report, click here.