Markets are lower to start the week with corn down 4 and soybeans down 12. Soybeans are leading the markets as of late with South American weather and projected production being the catalyst.
AgRural, a Brazilian agribusiness consultancy, on Friday cut for the third consecutive time its estimate for Brazilian production of corn in the summer, citing dry weather in the nation’s southernmost state of Rio Grande do Sul. AgRural now projects summer corn production in center-south fields to be an estimated 19.4 million tonnes for the 2020/2021 cycle, down from 20.7 million tonnes forecast last month and roughly in line with last season’s 19.7 million tonnes, when dry conditions in Rio Grande do Sul farms also slashed yields and output.
Brazil’s soybean production in the 2020/2021 cycle is expected to jump to a record of 131.79 million tonnes as high prices drove farmers to increase plantings, according to the average of 13 analysts’ estimates polled by Reuters on Friday. This represents a 5.6% rise from what the government says farmers collected last season, which was an estimated 124.8 million tonnes. The poll also shows that a drought reduced expectations for an even bigger crop, as in October the average of analysts’ forecasts showed estimated output this season at 132.25 million tonnes.
Reminder that we do have a USDA report out on Thursday. Very seldom does the USDA alter this report, but corn and soybean stocks are going to be watched closely. They will not adjust yield or production, but will look at use and forward demand.
Have a Safe Day!