By Andi Anderson
Indiana Farm Bureau’s Chief Economist Todd Davis has provided key insights on the recently released U.S. Department of Agriculture (USDA) World Agricultural Supply and Demand Estimates (WASDE) report.
The report, which offers projections on commodity stocks and production, shows significant changes in both soybean and corn stocks for the upcoming year.
According to Dr. Davis, the USDA is predicting soybean stocks to decrease by 16%, which equates to 55 million fewer bushels compared to 2024. In contrast, corn stocks are expected to increase by 27%, or 385 million bushels, over the same period.
“While the report wasn’t as pessimistic as some had feared, the increase in corn ending stocks could act as a headwind, limiting price potential,” Davis noted. He explained that the USDA is currently assuming ideal weather conditions that would lead to record yields.
However, any weather-related event that reduces yield potential could disrupt these predictions and impact supply and ending stocks.
“It’s always important to remember that these predictions are preliminary. There’s still a lot of room for Mother Nature to influence those numbers,” Davis added.
Davis pointed out that trade uncertainties, particularly in the wake of news like the Chinese tariff pause announced by the Trump administration, could disrupt the market. He referred to the effects of the trade dispute with China, which led to a shift in soybean imports from the U.S. to Brazil. “Markets crave certainty, and we haven’t had much certainty on the trade front this year,” he said.
As the market continues to respond to these factors, Davis urged caution and emphasized the need for continued monitoring of weather patterns and trade developments.
Photo Credit: usda
Categories: Indiana, Government & Policy