By DTN Staff

This article was originally posted at 11:01 a.m. CST on Friday, Dec. 8 and updated again at 11:04 a.m., 11:06 a.m., 11:16 a.m. and 11:23 a.m. It was last updated with additional information at 11:23 a.m. CST on Friday, Dec. 8.

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OMAHA (DTN) -- USDA lowered Brazilian soybean production by 2 million metric tons (mmt) to 161 mmt (5.9 billion bushels) in one of the few significant changes to crop production numbers. Despite lower production, USDA increased Brazil's exports 2 mmt to 99.5 mmt.

USDA on Friday released the World Agricultural Supply & Demand Estimates (WASDE) for December. The report offered few changes to domestic supplies and demand.

According to DTN Lead Analyst Todd Hultman, Friday's new-crop U.S. ending stocks estimates were roughly neutral for corn, soybeans and wheat. Hultman sees the world ending stocks estimates from USDA as roughly neutral for corn, soybeans and wheat.

Stay tuned throughout the morning and refresh this page often as we will be sending a series of updates with the important highlights from today's reports, including commentary from our analysts.

You can also access the full reports here:

-- Crop Production: https://www.nass.usda.gov/…

-- World Agricultural Supply and Demand Estimates (WASDE): http://www.usda.gov/…

CORN

In a report with few changes, USDA increased U.S. corn exports 25 million bushels (mb) to 2.1 billion bushels (bb).

Most corn numbers held pat. U.S. production for 2023-24 crop was 15.234 bb and yield remained at 174.9 bushels per acre.

Ending stocks for the 2023-24 crop remained at 2.156 bb.

On the demand side, Feed and Residual use came in at 5.65 bb. Total 2023-24 Food, Seed and Industrial use at 6.740 bb. Ethanol use was 5.325 bb. Total domestic use is forecast at 12.39 bb. Exports for the corn crop are pegged at 2.1 bb.

The farmgate price for the 2023-24 crop remained at $4.85 a bushel.

Globally, beginning stocks for the 2023-24 new crop were raised .88 mmt to 300.1 mmt. Production globally was raised 1.28 mmt to 1,222.07 mmt. Global exports were bumped up 1.84 mmt to 201.46 mmt. Global ending stocks for the new crop are forecast at 315.22 mmt, up .23 mmt.

Ukraine's production was increased 1 mmt to 30.5 and Ukraine's exports also were increased 1 mmt to 21 mmt.

Looking at global 2022-23 crop, Brazil's production was held at 137 mmt and exports were held pat at 57 mmt. Argentina's production was held at 34 mmt and Argentina's exports were held pat at 23 mmt.

SOYBEANS

Brazilian soybean production was estimated at 161.0 mmt, a decrease from 163.0 mmt in November. Despite lower production, USDA increased Brazil's exports 2 mmt to 99.5 mmt.

Total production for U.S. soybean remained at 4.13 bb, the same as November. The yield forecast was 49.9 bushels per acre, also left unchanged from last month.

Domestic ending stocks for 2023-2024 are forecast at 245 mb, unchanged from November.

The national average farm gate price was left unchanged at $12.90 per bushel.

Globally, USDA pegged world soybean stocks at 114.21 mmt, decreased from 114.51 mmt last month.

Argentina's soybean crop is estimated at 48.0 mmt, which is unchanged from last month.

WHEAT

USDA estimates U.S. wheat ending stocks at 659 mb, decreased from November's estimate of 684 mb.

U.S. wheat use is estimated at 1.89 bb, increased from 1.86 bb in November.

Wheat exports were estimated at 725 mb, an increase from 700 mb last month. USDA estimates the farmgate price of wheat at $7.30, also a bump up from $7.20 last month.

Wheat world ending stocks were estimated at 258.20 mmt, down from 258.69 mmt in November.

USDA pegged global wheat production at 783.01 mmt, an increase from 781.98 mmt last month.

USDA estimates wheat production in Argentina at 15.0 mmt, unchanged from the November. Brazil's production was estimated at 8.4 mmt, down from 9.4 mmt. Wheat production in Australia was estimated at 8.4 mmt, down 1 mmt from November.

USDA estimates wheat production in Russia at 90 mmt, unchanged from November. Ukraine wheat production was pegged at 22.5 mmt, also unchanged from last month.

Wheat exports from Russia were estimated at 50 mmt, left unchanged from last month, while USDA estimates Ukraine exports at 12.5 mmt, an increase from 12.0 mmt in November.

LIVESTOCK

The December WASDE report focused on stability through the end of 2023 when it comes to production levels in the beef market, but underlined the current concerns of increased 2024 production for beef production, which has already posted significant market pressure over the past few weeks. Beef production levels for the current year have been unchanged in the current report, but 2024 production levels increased 180 million pounds. This has caused a $1.75 per reduction in estimated 2023 price levels, but a significant $7 per cwt push lower in 2024 levels. Pork production levels have increased 25 million pounds in 2023 but are unchanged for 2024 estimates in the latest report. No changes developed in either 2023 or 2024 hog price levels in the latest report.

The expected beef production gain in 2024, combined with a 10-million-pound estimated increase in imports for the year from last month's report, increases total supply by 190 million pounds from Novembers report. While 2023 total supply increased only 10 million pounds from last month's report. A significant shift lower in 2024 exports of 100 million pounds from last month's report is the biggest shift, although this increased overall total use projections significantly by 125 million pounds from last month.

Overall, the report confirms weakness in the beef and cattle markets, which have for the most part already been factored into the complex. It is expected that very little significant surprises will be seen due to the report, but this report does confirm concerns of growing supplies and pork export movement in the coming year.

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Editor's Note: Join DTN Lead Analyst Todd Hultman at 12:30 p.m. CST on Friday, Dec. 8, for a look at what the day's numbers mean for grain prices. To register, visit: https://www.dtn.com/…

U.S. ENDING STOCKS (Million Bushels) 2023-24
	Dec	Avg	High	Low	Nov
Corn	2,131	2,157	2,293	2,106	2,156
Soybeans	245	242	259	215	245
Wheat	658	684	706	670	684
WORLD ENDING STOCKS (million metric tons) 2022-23
	Dec	Avg	High	Low	Nov
Corn	300.1	299.2	299.6	299.0	299.2
Soybeans	101.9	100.3	100.4	100.0	100.3
Wheat	269.9	269.6	270.0	269.3	269.6
WORLD ENDING STOCKS (million metric tons) 2023-24
	Dec	Avg	High	Low	Nov
Corn	315.2	313.0	315.0	310.0	315.0
Soybeans	114.2	112.9	116.8	110.5	114.5
Wheat	258.2	258.8	260.2	257.9	258.7

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