Commodity Market Update March 13, 2019

Grains

Last Friday the USDA released the March WASDE (World Agriculture Supply Demand Estimates)
report. The average estimate for soybeans ending stocks was 902 million bushels; the report
was at 900 million bushels (Chart 1, 2018 bar). The estimate was close to the actual, and the
data remain bearish to price, especially the stocks to use ratio of 21.9% (Chart 2, 2018 bar).

Chart 1

Chart 2

The average estimate for wheat ending stocks was 1.020 billion bushels; the report was at
1.055 billion bushels (Chart 3, 2018 bar). The report was bearish to price when compared to the
estimate, and yet the ending stocks have been declining for the last three years. However, the
stocks to use ratio remains bearish to price at 55.6% (Chart 4, 2018 bar).

Chart 3

Chart 4The average estimate for corn ending stocks was 1.736 billion bushels; the report was at 1.835
billion bushels (Chart 5, 2018 bar). The report was bearish to corn prices. However, the overall
data for corn are less bearish than soybeans or wheat. Ending stocks have been decreasing for
the last three years and the stocks to use ratio, 12.4%, (Chart 6, 2018 bar) is the lowest in the
last five years.

Chart 5

Chart 6

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