Due to the lingering drought conditions, USDA lowered South America’s corn production. Brazilian corn production dropped from 118 million metric tons to 115 million metric tons. Argentina’s corn production is now at 54 million metric tons. USDA reduced Brazil’s soybean production estimate from 144 million tonnes to 139 million tonnes. USDA cut Argentine soybean production from 49.5 million tonnes to 46.5 million metric tons in the Supply and Demand report. AgResource Company President Dan Basse says the biggest surprise for grain traders was the drop in Brazil’s soybean production. “It was a record large drop in terms of South American soybean production.” Moving forward, the grain markets will continue to focus on South American weather and U.S. export potential. “If the crops are actually down where we think they’re at, this opens the market to further upside potential, but we need confirmation of that yield data going forward.”
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