30 Aug 2022
Corn production in the USA has been projected to be lower than what was expected. Short-term forecasts expect some precipitation that could boost yields in some of the drier parts of the region. The USDA’s most recent estimate of crop production showed record yields, although it is likely to decline, with a likely downward adjustment in the area sown as well.
As for the price of soybeans, last week it rose considerably due to technical and commercial purchases. Supplies of previous crops remain scarce, and the demand for crushing is strong.
Regarding information about global demands, the USDA released surprisingly strong figures, even for this time of year, which marks the beginning of some of the world’s top buyers moving from South America to the U.S. While harvesting is about to begin in the Midwest, market analysts say, the transition from old to new crops will produce a reduction in cash supply. Short-term global stocks remain relatively scarce.
Corn rose in commercial and technical purchases, adding to weekly gains.
A major private crop tour points to the USDA lowering the corn yield estimate for next month.
The rain expected in the near term for the Midwest and plains could come too late to do more than stabilize yields in parts of the region. It has been a very varied growing season, reflected in USDA crop condition ratings and recent yield projections.
On the production for the next season, from the USDA estimate that the production of US corn will be lower than expected, that cut was also given for the world stocks of corn, with a totally opposite forecast for the estimates of soybeans.
Trade is also attentive to the preconditions for planting corn and soybeans in Argentina and Brazil, since the USDA estimated the production of corn and soybeans at 55 and 51 million tons for Argentina and 126 and 149 million tons for Brazil, respectively.
According to France’s AgriMer , 47% of that nation’s corn crop is in good or excellent shape, up from 91% a year ago.
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