The derecho was tracked by the National Weather Service from central Iowa to Detroit, Michigan, as the windstorm covered about 550 miles over a 9-hour time span.
Despite severe damage to crops in some locations, analysts contend isolated weather events like this week's windstorm, typically, have a minimal impact on total U.S. production.
Greater influence on prices was noted this week when government analysts gazed into their crystal balls to prognosticate agricultural supply and demand well into next year.
The July USDA Crop Production and World Agricultural Supply and Demand Estimates, or WASDE, report was released this week. Most notable were the new-crop corn ending stocks of 870 million bushels. That’s down 12 percent from the trade’s average guess, but 25 percent more than USDA predicted last month.
Old crop corn ending stocks were estimated three percent below the trade’s average estimates at 880 million bushels. USDA pegged corn feed and residual use at 5 billion bushels, food, seed and industrial at 6.43 billion bushels and ethanol at 5.1 billion bushels. Exports were estimated to be 1.9 billion bushels.
The 2010–2011 soybean ending stocks were estimated to be 200 million bushels, but new-crop ending stocks dropped as expected to 175 million bushels. That is more modest than the trade’s average 169 million bushel target.
Total wheat production increased from USDA’s June estimate of 2.06 billion bushels to 2.11 billion bushels. Spring wheat was up 12 percent from the trade’s average expectation of 551 million bushels but the same as last year.
Meanwhile, winter wheat production is up slightly from 2010 at 1.5 billion bushels. New-crop wheat supplies rose 90 million bushels, as higher carry-in and production offset reductions in imports and higher use.
Traders viewed the USDA report as generally positive with little surprises. The old crop corn carryover was a bit smaller than expected. And the corn carryover for the 2011–2012 crop came in well above trade estimates. The bean carryover was right at pre-report estimates for both crop years.