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Farm Progress America, February 12, 2024

Mike Pearson tells us what the latest WASDE report from the USDA says about soybean production in Brazil.

February 12, 2024

Mike Pearson examines the latest WASDE report and how the soybeans in Brazil impacted it.

Soybean traders expected cuts to the Brazilian production due to weather earlier this crop season.

So far, 20 percent of the crop has been harvested there.

Before the USDA's WASDE report came out, Brazil released it's equivalent, CONAB which showed soybeans would show less production.

The CONAB estimate is 149 million metric tons which means 8 million fewer than in reported in the WASDE report in January.

USDA lowered the expected amount but not by much-- it was lowered to 156 million metric tons.

Soybean prices moved lower after the report.

The USDA did increase Brazil's shipping volumes, which is showing potential for bigger yields in later planted fields.

Corn was a bit of a snooze in the report.

There is an expected 10 million metric tons decline in the use of glucose and dextrose. However, corn stayed around the $4.80 mark.

However, South America had a bigger than expected change in yield expectancy.

There was a 125 million bushel shrink when it comes to corn.

It signaled that safrinha may be seeing climate woes and unfavorable yield which could mean a smaller acreage next year.

A 2 percent decline in corn production and maybe as much as 4 percent decline in shipping.

Although Argentina experienced some dry weather earlier this growing season, the USDA didn't many any adjustments to the production estimates.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.

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