Market News & Headlines >> USDA Seen Lowering Argentina's Crops
USDA is expected to slash its estimate of Argentina’s corn and soybean crops in Tuesday morning’s supply/demand report due drought conditions in that country and is also expected to lower its forecast for Brazil’s corn production, while raising Brazilian soybean production is expected to rise to a record high.
U.S. trade estimates of Argentina’s 2017-18 corn crop average 33.7 million metric tons in a range from 32.0 million to 36.0 million compared with USDA’s March estimate of 36.0 million tons. Argentina’s Buenos Aires and Rosario grain exchanges have both pegged the Argentine corn crop at 32.0 million tons.
Trade estimates of Argentina’s soybean crop average roughly 42.7 million metric tons in a range from 40.5-46.0 million tons compared with USDA’s March estimate of 47.0 million. However, the Buenos Aires Grains Exchange last week lowered its soybean crop estimate to 38.0 million tons and the Rosario exchange most recently pegged production at 40.0 million tons in mid-March.
In contrast, USDA is expected to raise its estimate of Brazil’s soybean production with strong yields spurring expectations for another record crop there. U.S. trade estimates of Brazil’s soybean crop average roughly 115.3 million metric tons in a range from 113.3-117.0 million compared with USDA’s March estimate of 113.0 million tons. Private crop estimates out of Brazil range as high as 119.0 million tons.
USDA is expected to lower its estimate of Brazil’s total corn production due to reports of lower second-crop plantings. Trade estimates of Brazil’s total corn crop average 92.7 million tons in a range from 86.5-96.0 million compared with USDA’s March estimate of 94.5 million tons.