USDA makes adjustments to South American outlooks

The USDA has lowered its corn and soybean production estimates for Brazil. That follows planting delays in many key growing areas caused by weather, primarily hot, dry conditions in central portions and excessively wet conditions in the south. The USDA currently has Brazil’s soybean crop at 157 million tons, 4 million below December, with a combined corn crop of 127 million tons, 2 million lower, with the USDA lowering corn exports, but leaving beans unchanged. Brazil is still expected to be the world’s largest exporter of corn this marketing year.

Generally better weather in Argentina is expected to boost corn and soybean production this year. Argentina’s soybean crop is seen at 50 million tons, up 2 million on the month and 23 million on the year, with corn at 55 million tons, unchanged from a month ago and up 21 million from a year ago. The big unknowns for Argentina in terms of trade are the full impact of the new president slashing their currency valuation and raising export tariffs for corn and soybeans, but not soybean products.

The USDA’s next round of global production estimates is out February 8th.

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