The USDA released its April World Agricultural Supply and Demand Estimates (WASDE), which reflects serious drought problems that are plaguing the Argentina soybean crop.
The USDA lowered its estimate for Argentina’s soybean crop by 7 million tons to 40 million tons because of reduced harvested area and yield.
Between January and March, drought hit the South American country in the prime growing months, while to the north, parts of Brazil received above average rainfall.
While the soybean production number is lower, it’s offset by higher production in Brazil. The USDA expects Brazilian farmers will producer 115 million tons, setting a new record.
Prior to the report, the USDA issued a statement confirming 120,000 metric tons of U.S. soybeans headed to Argentina, the largest purchase in two decades and the first sale to Argentina since the 2008/09 season.
Hear comments from Pro Farmer editor Brian Grete on AgDay above.