The USDA Supply and Demand Report later this month could see ending stocks for corn and wheat moving lower. That same report could see ending stocks for soybeans moving higher. The common thread for the changes in corn, soybeans, and wheat is U.S. exports.
U.S. corn exports could be seeing a boost due to the declining corn production in Argentina. Last month USDA estimated Argentina’s corn production at 42 million tons. Weather concerns in Argentina during January suggest its corn production could slip to 37 million tons. Increasing soybean production from Brazil could spell trouble for U.S. soybean exports beginning next month and into the balance of the marketing year, which ends in August. That export reduction could push U.S. soybean ending stocks higher than the current 470 million bushels.
Don’t look now, but could corn finally begin to see some bright news for prices, changing the funk producers have been in for months?