Crop Market Report- December 2024
By Michael Diliberto, Ph.D.
LSU Ag Center/Extension Service Economist
The attached Crop Market Update Report for the month of December contains a summary of the markets’ reaction to the latest USDA supply and demand report.
Highlights of the December WASDE report include:
A bullish reaction was observed in the futures market as the USDA increased corn demand and reduced ending stocks. However, the season average farm price remains forecast at $4.10 per bushel for 2024/25.
A bearish sentiment was realized as the USDA did not make any supply or demand changes to the December balance sheet for soybeans. The bearish news was in the season average farm price forecast for 2024/25, which was lowered $0.60 from last month to $10.20 per bushel.
For rice, the report was neutral. The only adjustment was in exports. Long grain exports were reduced (2 M cwt) while short and medium grain exports were increased (2 M cwt). The price for long grain rice remains at $14.50 per cwt for 2024/25.
USDA increased the cotton production estimate for 2024/25 based on higher expected yields. The production forecast for 2024/25 is now 14.26 M bales. With demand unchanged, ending stocks are increased from the production bump. The season average farm price remains at 66 cents per pound. The cotton report was considered bearish/neutral.
For sugar, USDA reduced the 2024/25 beet sugar production estimate for December (now at 5.160 M STRV). Cane sugar production remains constant (month-over-month) at 4.066 (M STRV). Imports are increased based off expected Mexican exports into the US. Total sugar supply is raised this month (14.251 M STRV) with use unchanged (12.555 M STRV). The stocks-to-use ratio is now estimated at 13.5%.