Good morning,
Markets are unchanged to start the day with the USDA report behind us and South American weather, harvest data and size now the focus.
Yesterday’s USDA WASDE report was rather uneventful, as expected, with only limited U.S. balance sheet revisions being made and South American adjustments, mainly Argentina, continuing as further developments on the potential size of their corn and soybean crops are awaited. The most notable surprise of the report was the lack of a downward revision in the U.S. corn export projection, which was widely anticipated.
The only change to the U.S. corn balance sheet this month was a 25-million-bushel reduction in corn for ethanol usage to 5.250 billion bushels, now reflecting 76 million bushel reduction from last year’s 5.326 billion.
USDA 2022/23 US Carryout (billion bushels)
USDA FEB | Average Est. | USDA JAN | |
Corn | 1.267 | 1.266 | 1.242 |
Soybeans | .225 | .211 | .210 |
Wheat | .568 | .576 | .567 |
USDA 2022/23 South American Production (million tonnes)
USDA FEB | Average Est. | USDA JAN | |
Argentina Corn | 47.00 | 48.50 | 52.00 |
Argentina Beans | 41.00 | 42.34 | 45.50 |
Brazil Corn | 125.00 | 125.18 | 125.00 |
Brazil Beans | 153.00 | 153.01 | 153.00 |
USDA World 2022/23 Carryout (million tonnes)
USDA FEB | Average Est. | USDA JAN | |
Corn | 295.28 | 294.71 | 296.42 |
Soybeans | 102.03 | 102.03 | 103.52 |
Wheat | 269.34 | 268.56 | 268.39 |
Weekly exports came in at 45.7 million bushels for corn which is above the 10 week average of 31.0 million bushels and the second highest in the last 10 weeks. This week’s sales were made up of Japan, Unknown and Mexico. We are currently 243 million bushels behind the pace needed to meet the USDA’s projections for the year.
Have a Safe Day!
Garry Gard
920-348-6844