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Ukraine export woes could offset some of the record corn production in South America

An agricultural economist with Advance Trading says the war in Ukraine could provide some support for the corn market, despite a record harvest in South America.

Brian Basting tells Brownfield, “The corn harvest in Brazil is wrapping up. That’s the second crop corn harvest, a record corn harvest in Brazil.”  He says, “Record domestic use though too, so that could curtail exports a little bit. Argentina though has a record crop that they’re finishing up harvesting that they will aggressively, from all indications, export.”

However, he says continued export issues in the Black Sea could negate some of South America’s increased production on the global market.

“There’s some talk going that they’ll devise some way to have a safe corridor for exports, which is what they did four years ago. At the moment, that is not in place.”  He says, “So, if you curtail Ukraine corn exports, that may help offset these larger exports in South America.”

Basting says the war in Ukraine also continues to boost wheat prices, which is likely to influence the number of winter wheat acres U.S. farmers plant this fall, and potentially cut into corn acres next year.

AUDIO: Brian Basting – Advance Trading