The USDA did not offer any surprises today. Grain usage estimates were in line with traders? expectations.
In South America, the Argentine corn and bean crops were right in line with what trade expected. In Brazil, the soybean crop was 2 million tons smaller and corn crop 1 million ton larger than the average trade forecast. Most traders think the USDA will reduce the Brazilian bean crop further in subsequent reports.
Source: USDA, StoneX, Bloomberg
The USDA report did not take traders? attention away from Russia?s invasion of Ukraine. News reports Wednesday indicate more intense negotiations for a settlement were being facilitated by Israel.
Facing an onslaught of Russian destruction alone, Ukraine is being encouraged to negotiate a settlement. Commodity traders are betting that will occur, as of this writing. It is not too late to plant a crop there, and crop prices are reacting accordingly.
They may see the Ukraine situation differently tomorrow.
Source: USDA, StoneX