Feed Ingredients Report: Week Ending Aug. 24, 2018

Weekly Average Price History

Week	Corn	Soybeans	Wheat SRW
Aug. 26, 2018	3.54	8.59	5.26
Aug. 19, 2018	3.62	8.70	5.42
Aug. 12, 2018	3.68	8.84	5.65
Aug. 5, 2018	3.68	8.91	5.55

• Advisory service Pro Farmer, a division of Farm Journal Media, projected 2018 U.S. soybean production at 4.683 billion bushels based on an average yield of 53.0 bushels per acre (bpa). The forecast is above the USDA’s prediction for a record-large soybean crop totaling 4.586 billion bushels with an average yield of 51.6 bpa.
• Pro Farmer estimated U.S. corn production at 14.501 billion bushels, based on an average yield of 177.3 bpa. The production and yield estimates were below USDA’s forecast for the third-largest U.S. corn harvest totaling 14.586 billion bushels with a record-high yield of 178.4 bpa.
• General consensus from country elevators in both producers and elevators will try to store/hold as many soybeans and corn as possible and move corn only if needed.
• The International Grains Council raised its forecast for world corn production in the 2018-19 season largely driven by an improved crop outlook in the U.S. The inter-governmental body, in a monthly update, put world corn production in 18-19 at 1.064 billion tonnes, up 12 million from its previous projection. “Because of tighter supplies, use of wheat and barley are seen falling, likely transferring some demand to maize, particularly in the livestock sector,” the IGC said. The IGC also reduced its forecast for world wheat production in 18-19 by 5m tonnes to 716m tonnes while consumption was also cut by 5m tonnes to 734m tonnes.
• Export sales were solid this week with wheat sales falling off while corn and soybean sales remained very strong. Wheat sales were much weaker at 8.8 million bushels, corn sales were very strong at 48.3 million bushels, and soybean sales were exceptional at 47.8 million bushels. Oilseed product sales were mixed as soy oil sales were very weak at 6,300 tons, and meal sales were strong - but down - from last week at 244,600 tons. YTD, wheat sales are down 25.9%, corn sales are up 6.8%, soybean sales are down 3.2%, meal sales are up 20.7%, and oil sales are down 7.2%.
• Grain stocks in Russia, one of the world’s largest wheat exporters, are expected to hit their lowest level in six years by the end of the 18-19 marketing season on June 30, the SovEcon consultancy said in a note on Thursday. Russia’s wheat crop has been hit this year as a dry spring and summer ended five years

Weekly Spotlight

The EU is likely to import a record 21 million tons of grains (corn) in 2018-19 as the relative price of wheat and barley drive additional corn feeding.