USDA cuts South American soybean outlook
The USDA has lowered its outlook for 2022 South American soybean production.
The move follows an extended period of generally hotter and drier than normal weather in portions of Argentina, southern Brazil, and Paraguay, consistent with La Nina conditions.
The USDA has Brazil’s soybean crop at 134 million tons, down 5 million from January, with Argentina at 54 million tons, 1.5 million lower, and Paraguay at 6.3 million tons, a decline of 2.2 million on the month.
Brazil’s corn crop is projected at 114 million tons, 1 million less than last month, with Argentina at 54 million tons, unchanged from January.
Lower corn and soybean production in South America could set the stage for increased U.S. export demand.
Those are above some other major private and governmental estimates, which might be a sign the USDA is being cautious with its cuts for now, with the next set of projections out March 9th.