USDA leaves South American corn, soybean crop unchanged
The USDA has left its South American corn and soybean production estimates unchanged for now. That was in question because of excessively dry conditions in parts of Argentina that have significantly delayed planting, which could cause some change to farmers’ acreage mix, while conditions for Brazil are comparatively good, but planting isn’t over quite yet. Argentina’s soybean export guess was higher, likely due to Buenos Aires’ soy dollar program, which is designed to boost soybean sales with a more favorable exchange rate with Brazil unchanged from November. Wheat production in Argentina was lower because of drought, with a slight increase for Brazil.
China’s soybean import and crush estimates were steady on the month, with the numbers assembled before Beijing decided to relax its zero-COVID policies.
Australian wheat production and exports were both above a month ago, but total global wheat production was trimmed on a cut for Canada, while the USDA raised wheat export projections for the European Union, Russia, and Ukraine.
Ukraine’s corn production guess was lower following a reduction in planted area, which was impacted by continued aggression by Russia, but the export estimate was above a month ago following the extension of the Black Sea export agreement.
The USDA’s next set of supply and demand estimates is out January 12th.