The United States Department of Agriculture (USDA) cut the estimate for soybean production in Argentina by 8 million tons compared to the projections of the previous month, from 41 million to 33 million tons, due to the drought that affects the most of the country.
In its report on global grain supply and demand, the USDA also applied a reduction in the corn crop forecast, from 47 to 40 million tons.
In both cases, these cuts were larger than expected by the market, which projected Argentine production at 36.65 million tons for soybeans and 43.4 million tons for corn.
As a result of these adjustments, the export forecasts for both unprocessed grains were also reduced.
In the case of corn, shipments abroad would fall from 35 to 28 million tons, while soybeans would go from 4.2 to 3.4 million tons.
These cuts had an impact on world production, since a soybean volume of 375.2 million tons (-7.8 million tons) and 1,147.5 million tons (-3.9 million tons) is expected. ) of corn.
On the other hand, the market focused its attention on the drop in US soybean stocks carried out by the official dependency greater than those expected by the private ones.
In this sense, he calculated final stocks of 5.7 million tons, 400,000 tons less than those estimated last month and 300,000 less than what was expected by the private sector.
On the side of US corn, it raised stocks to 34.1 million tons (900,000 tons more than expected by the market) and reduced exports from 48.9 to 47 million tons, while wheat was forecast to drop increased production worldwide from 5.1 million to 788.9 million tons.