WASDE: Argentina’s corn and soy production revised downward
The US Department of Agriculture (USDA) released its latest World Agricultural Supply and Demand Estimates (WASDE) today.
For corn, the US agency’s outlook pegs Argentinian production at 37Mt, down from 40Mt estimated in March, with exports declining to 25Mt.
It also forecast reduced soybean production for the South American oilseed powerhouse, down to an expected 27Mt from the 33Mt seen in the prior WASDE, resulting in an increased import requirement, from 7.25Mt to 8.3Mt, according to CRM Agri's review of the data.
In addition, the USDA predicted lower soymeal export volumes out of Argentina, reducing those to 22.4Mt from 24.9Mt, as a result of the production downgrade.
US soy estimates were not touched, while, in Brazil, the USDA once more revised its soybean output upwards, with production there now forecast at 154Mt, a jump of 1Mt, noted the analysts.
US corn output estimates were left more or less unchanged, with only minor adjustments made to import projections, they found.
Corn exports for Ukraine have been revised higher, standing now at 25.5Mt, which is 2Mt higher than the March estimate.
And the impact of the drought of last summer is now being better quantified in terms of EU corn production, with USDA estimates for that crop lowered to 52.97Mt from 54.2Mt; the agency increased EU corn import estimates by 1Mt to 24.5Mt, said the UK grain and oilseed market specialists.
The USDA expects US wheat ending stocks to increase from 15.47Mt to 16.28Mt as US domestic demand estimates fell, driven by a reduction in domestic feed use.
“With an easing of US wheat supply, Chicago futures have come under further pressure," commented the CRM Agri team.
For the EU, wheat import estimates increased from 9Mt to 10.5Mt. EU feed use is also forecast to grow, from 45Mt to 47Mt, with ending stocks predicted to rise to 12.16Mt from 11.06Mt.
In the Black Sea, the US agency set Russian wheat export projections at 45Mt, up from 43.5Mt. Meanwhile, the USDA also increased its estimates for wheat exports from Ukraine by 1Mt to 14.5Mt.