March 25, 2023

The USDA is reducing soybean and corn harvests in Argentina, as well as ending stockpiles of oilseeds in the United States

The United States Department of Agriculture (USDA) this Wednesday (8) released its new monthly Supply and Demand bulletin confirming some of the market’s expectations, especially regarding numbers from Argentina. Domestic production was revised from 41 to 33 million tons, which is lower than market expectations. Thus, exports decreased from 4.2 to 3.4 million tons.

Soybean milling in the country decreased from 37.3 million to 35.25 million tons.

The Brazilian harvest, in turn, was maintained at 153 million tons and exports were corrected upwards, changing from 92 to 92.7 million tons.

Regarding China, the USDA slightly lowered its estimate for the country’s production from 20.33 to 20.28 million tons, while imports continue to be estimated at 96 million tons.

Thus, global soybean production decreased from 383.01 to 375.15 million tons, while final stocks decreased from 102.03 to 100.01 million tons.

soybeans in the United States

In the North American scenario, the figures indicated a decline in final soybean stocks in the country – from 6.12 to 5.72 million tons, at the same time that exports rose from 54.16 to 54.84 million. North American crushing decreased from 60.69 to 60.42 million.

American corn

The USDA also met market expectations for the North American scenario for corn, raising final stocks of the grain – from 32.18 to 34.09 million tons – and reducing exports from 48.9 to 46.99 million. The corn export program is very slow, while the use of grain for ethanol production remained unchanged at 133.36 million tons.

the atom of the world

World production was revised down from 1,151.36 to 1,147.52 billion tons. However, final inventories increased from 295.28 to 296.46 million tons.

Brazil’s production is still estimated at 125 million tons, while Argentina’s production has decreased from 47 to 40 million tons as per the USDA’s perspective. Ukraine’s harvest was maintained at 27 million tons.

The bulletin also indicated that Brazilian exports of grain were still estimated at 50 million tons, while Argentine exports were revised from 35 to 28 million tons.