News

Argentine crop production outlook continues to worsen

The outlook for Argentina’s crop production continues to worsen.

Analyst Matt Bennett with AgMarket.Net says USDA revised soybean projections from 41 million tons to 33 million in Wednesday’s supply and demand report.

“Which is just a huge difference. I mean their initial thought process earlier in the year was 51 million tons, so you’re already down 20 million tons from what the original guess was.”

He tells Brownfield the initial forecast for Argentine corn was 55 million tons, but USDA is now forecasting 40 million.

“You’re looking at an Argentine situation where they got in a bad stretch of weather and we’ve seen it before, you stress beans but you throw some weather at them at the right time, a little bit of rain, they come back to life and they yield. But they just haven’t ever gotten that bail-out rain.”

He says there’s still an expectation that record production in Brazil will mostly offset losses in Argentina. 

Brownfield interviewed Bennett during Commodity Classic in Orlando.