By Kirk Maltais
In a recent report, Brazil's crop agency, Conab, made downward revisions to its production forecasts for corn and soybeans in the 2023/24 season. The agency now expects soybean production to reach 149.4 million tons and corn production to reach 113.7 million tons.
Conab attributed these reductions to adverse weather conditions that have been affecting crops. The agency specifically mentioned irregular and poorly distributed rainfall patterns, as well as extended periods of dryness.
Previously, Conab had projected soybean production to be at 155.3 million tons and corn production at 117.6 million tons. The cuts made by Conab were larger than what traders had anticipated, leading many to look to Argentina as a potential source to make up for Brazil's losses.
Following the release of Conab's data, grain futures on the Chicago Board of Trade (CBOT) have shown mixed movement. Traders are now awaiting the release of the U.S. Department of Agriculture's (USDA) outlook in today's WASDE report, which could further impact futures. In pre-market trading, the most-active CBOT corn futures have risen by 0.2%, soybeans have increased by 0.4%, and wheat prices have declined by 1.4%.
