March 9, 2023


US government slashes Argentina's soybean and corn harvest forecast



The US government estimates Argentina's upcoming soybean harvest will be nearly 20% lower than previously forecast due to hot and dry conditions that have wilted crops there throughout the growing season, Nasdaq reported.


The decreased output from Argentina, a major global supplier of soybeans, will increase demand for American soybeans abroad, and deplete already low domestic US stocks.


The US Department of Agriculture's (USDA) monthly World Agricultural Supply and Demand Estimates showed Argentina's soybean harvest at 33 million tonnes. Comparatively, the forecast for February was at 41 million tonnes. Analysts had anticipated the report to show Argentina's soybean harvest at 36.65 million tonnes.


The forecast for Argentina's corn harvest was also reduced from 47 million tonnes to 40 million tonnes.


Terry Reilly, senior commodities analyst with Futures International, said the USDA was aggressive in cutting the forecast for Argentina's soybean and corn production, much larger than what the trade was looking for on average.


Soybean futures on the Chicago Board of Trade surged to session highs after the report was published.


The USDA increased its estimate of US soybean exports by 25 million bushels to 2.015 billion bushels. It also reduced the forecast for domestic crush from 2.230 billion to 2.220 billion bushels.


As a result, the forecast for domestic ending stocks in 2022/23 dropped to 210 million bushels, 10 million bushels below trade expectations.


-      Nasdaq

Video >

Follow Us