The United States Department of Agriculture (USDA) revised its global corn stock and harvest forecasts downward on Thursday, primarily influenced by a decreased harvest in Brazil.
In the latest edition of its monthly World Agricultural Supply and Demand Estimates (WASDE) report, the USDA projects global corn production to reach 943.73 million metric tons (excluding China), down from the previous estimate of 946.89 million metric tons.
The notable reduction is primarily attributed to a sharp decline in Brazilian production, which saw a decrease of 3 million metric tons. Brazil’s export capacity also weakened, with external sales now totaling 52 million metric tons instead of the previous estimate of 54 million.
Gautier Le Molgat, CEO of the French subsidiary of the commodity advisory group Argus Media, noted that this positions the United States potentially as a leader in wheat exports, with an estimated 53.34 million metric tons.
While Ukraine’s corn production remains steady at 30.50 million metric tons, its export capacity increased by two million metric tons, reaching 23 million. This improvement in Ukraine’s export capacity extends to wheat as well, with the USDA reporting an increase to 15 million metric tons, up by one million.
For soybeans, global stock assessments rose by almost two million metric tons. However, the USDA also revised its production estimate for soybeans in Brazil to 156 million metric tons, a decrease of one million.
In the case of wheat, global production underwent a slight upward revision of nearly one million metric tons, reaching 785.74 million metric tons. This adjustment is attributed to a minor increase in production in Argentina.