In the May WASDE report, USDA left Argentina’s corn and soybean production unchanged at 47 million metric tons. At the same time, USDA lowered Brazil’s corn production estimate to 102 million metric tons. “I think the trade will assume this was a good move and will expect more significant cuts going forward,” said Arlan Suderman, chief commodities economist, StoneX Group. The smaller Brazil’s crops get, the tighter world supplies become. That brings more demand to the U.S. “USDA showed there’s enough room there to raise the (corn) export target, but beyond that, the markets are going to have to push more wheat to the feed bunk,” said Suderman. “I think the USDA failed to recognize how much wheat is already going into the feed bunk, it could go up in future reports.”
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