So far, favorable South American weather forecasts support estimates of increased crop production in Brazil and Argentina.
Debra BeachyAgWeb Contributing Editor
Apparently taking favorable weather into account, USDA this week raised Brazil’s soybean production estimate, on the heels of a similar adjustment by Brazil’s government.
Soybean futures soared Thursday after a bullish USDA report pushed down production estimates lower than expected.
Lower than predicted corn ending stocks and soybean ending stocks resulted in mixed markets predicted Thursday after USDA released a bevy of reports.
Markets slid lower Wednesday, a day ahead of a slew of USDA January reports, including ones that will detail annual crop production and quarterly grain stocks.
So far, favorable South American weather forecasts support estimates of increased crop production in Brazil and Argentina. As a result, some analysts are betting on bigger U.S. ending stocks.
Soybeans rallied Tuesday for the second day in a row despite the threat of a record bumper Brazil crop, while corn and wheat futures slid.
Brazil ‘s government grain agency CONAB raised its estimates Tuesday for record bumper crops of soybeans and grains.
Even though analysts don’t expect major adjustments by USDA in the January crop production report, they will be paying very close attention to its estimates on Thursday.