Despite much pre-report trade anticipation for USDA to potentially make cuts to Brazilian corn and soybean production in today’s WASDE report, USDA instead left 2023/24 corn and soybean production estimates for the South American country unchanged.
USDA also trimmed 2023/24 ending corn stock volumes for U.S. supplies after adding more consumption to feed and residual as well as ethanol volumes. However, the markets had likely already priced in those expectations prior to the report’s release, leading corn prices to drift slightly lower in the report’s aftermath before returning to fractional gains.
Soybean prices continued to trade at a loss following the report’s release, though slightly higher European Union import volumes helped to trim the losses. Wheat prices fell around a penny lower as more wheat from Russia, Ukraine, and Australia floods the market and major buyers from the Middle East show signs of reducing import volumes.
