The USDA has released its World Agricultural Supply and Demand Estimates (WASDE) report for the month of June.
The global soybean number output had many analysts looking closely, with the report showing a decline of two per cent in projected harvested totals. This was not entirely surprising, as many of the key soybean growing areas are facing severe drought conditions.
Higher beginning stocks for soybeans reflect reduced exports for the 2022/23 crop year — down 15 million bushels to 2.0 billion, based on lower-than-expected shipments in May as well as competition from South America.
On the flip side, the report revealed some positivity in global corn production heading in an upward trend. Earlier expectations had corn output five per cent lower than what it actually came out at — 3.8 million tons higher — to 1.5 million.
The wheat market also saw an uptick in global production, with projections indicating a three per cent increase — or 10.8 million tonnes — to 1.1 million. Although many areas of the U.S. and Canada are struggling with drought conditions, global harvest conditions have been positive leading to larger production for Russia, India, the EU, and Ukraine.