The USDA World Ag Supply & Demand report was out last night. The focus was generally on corn production estimates in Europe and the US, wheat production in Russia and Ukraine exports / ending stocks.
Starting at the beginning, US corn production was reduced from 368.44mt last month to 364.73mt, back 3.71mt, an increase in carry in and a decrease in consumption and exports resulting in a net reduction of 2.06mt to carry out, now pegged at 35.27mt.  The average US corn yield now estimated at 175.4bu/ac (11.009t/ha). Many consider this number still too high, leaving the door open for further adjustments in the September estimates.
The EU saw some big changes, corn production back a massive 8mt due to the hot dry summer. Decreases in EU usage and exports and an increase of 3mt to projected imports resulting in a net change of -1.02mt to carry out, now at 7.56mt, according to the USDA.
The report also noted a sharp reduction in US sorghum production from the July WASDE. Production was estimated 23.1% lower month on month, that’s a massive decline. Sorghum ending stocks too reflecting a sharp decline, even with adjustments lower to both domestic US consumption and exports. Yet the USDA left the projected average farm price for sorghum steady at US$6.55/bu.
Onto wheat, world production was increased 7.96mt to 779.6mt, that’s a significant increase, not exactly what we like to see. The USDA reduced carry in by 3.75mt and increased usage and exports, the net result, after the smoke cleared, was a reduction of 180kt in ending stocks, better than one may have though considering the jump in production. Drilling down into the report we see the big production increase was Russia, up 6.5mt to 88mt, more in line with private estimates now.
Interesting to note a 3mt reduction in Indian production, but still big at 103mt. Ukraine exports were up 1mt to 11mt, reducing their carry out by 1mt.