The Agriculture Department has revised its forecast for Brazilian corn and soybean production, with a smaller reduction than expected for soybeans.
According to the USDA’s monthly World Agricultural Supply and Demand Estimates report, Brazilian soybean production is now projected at 156 million metric tons, while corn production is estimated at 124 million metric tons. These numbers represent a decrease from last month’s estimates of 157 million tons for soybeans and 127 million tons for corn, bringing the USDA’s outlook closer to that of the Brazilian crop agency Conab.
Industry analysts surveyed by The Wall Street Journal had predicted the USDA’s soybean estimate to fall further to 153 million tons, along with a corn estimate of 124.3 million tons. The relatively small decrease in the soybean estimate has contributed to a decrease in futures on the Chicago Board of Trade.
On the domestic front, the USDA has made a notable adjustment to soybean ending stocks, now projecting them to reach 315 million bushels. This figure surpasses both last month’s forecast and analyst projections.
As a result of the USDA’s report, CBOT grain futures have experienced a decline. Corn futures are down by 0.6%, soybean futures are 0.2% lower, and wheat futures have dipped by 2%.
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