Market News & Headlines >> USDA Seen Cutting South American Crop Estimates Slightly
The grain trade is expecting USDA to make small cuts to its forecasts for 2020/21 corn and soybean production in both Brazil and Argentina in Thursday’s monthly Supply/Demand report due to drier-than-normal spring weather that has affected crops in both countries.
On average, the trade expects USDA to peg Brazil's 2020-21 soybean crop at 132.29 million metric tons with expectations ranging from 130.00-134.00 million tons, compared with USDA's November estimate of 133.00 million, according to a Reuters News Service survey.
Pre-report expectations for Brazil’s total 2020-21 corn production average 109.09 million metric tons in a range from 105.00-112.00 million, compared with USDA’s November estimate of 110.00 million tons.
Pre-report trade estimates of Argentina's soybean crop average 50.41 million tons in a range from 49.00-51.00 MMT compared with USDA's November estimate of 51.00 MMT.
The trade, on average, expects USDA to peg Argentina’s corn crop at 49.25 million tons, down 750,000 tons from its November estimate, with trade expectations ranging from 48.00-50.00 million tons.
Dry weather delayed the start of soybean planting in Brazil’s large center-west growing belt and has stressed first-crop corn in central-south and southern Brazil. In Argentina, dry conditions have delayed corn planting progress and may limit planted acreage.
World Weather Inc. said in a special report released on Dec. 4 that “the period from late September through November was drier in the continent (South America) than any other time in at least 40 years and the odds are high that such dryness has not occurred for a much longer period of time.”