U.S. corn, soybean production estimates lowered

Published Nov 8, 2024

Tridge summary

The USDA has lowered its yellow grain harvest forecast for the 2024-25 season by 1.54 million tonnes to 384.6 million tonnes, due to reduced yields. Despite a global increase in corn production estimates, expected stocks have decreased due to higher consumption. Similarly, global soybean production has been reduced by 3.28 million tonnes, leading to a drop in global stocks. This decrease in grain production and stable global consumption have resulted in higher prices for corn and soybeans. Wheat production remains stable in the US, and slightly up globally, but consumption has led to a decrease in expected stocks, having no impact on wheat prices.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The USDA is now forecasting a harvest of 384.6 million tonnes of yellow grain for the 2024-25 US campaign, 1.54 million less than announced in its previous projection published in October, according to the monthly WASDE (World agricultural supply and demand estimates) report. "The progress of the US corn harvest has made it possible to adjust yields downwards (...) and this is leading to a decline in production," commented Gautier Le Molgat, CEO of Argus Media France. "It's taking everyone by surprise (...) we can finally see that (yields) were perhaps not that good," stressed Damien Vercambre, broker at Inter-Courtages. At the same time, global corn production estimates have been revised upwards (+2.21 million tonnes), notably thanks to "Uganda, Malawi, Belarus, Mozambique, Kenya and Cameroon," according to the USDA. At the global level, this increase in production is however offset by an increase in estimated consumption, which has led to a reduction in expected stocks at the ...

Source: TerreNet