SOUTH AFRICA SET FOR ANOTHER BUMPER CORN CROP
The FAS projects 2023-24 corn production at 15.8 million tonnes, down from 17.1 million tonnes last year, but it still will be considered a bumper crop. Corn exports are forecast to decline by 25% to 3 million tonnes. From a demand standpoint, the FAS noted that South Africa is facing the worst outbreak of Highly Pathogenic Avian Influenza. Due to the extent of the outbreak and the number of birds affected, (FAS) estimates that the local demand for corn as animal feed could drop by approximately 6% in 2022-23.
Corn planted area is projected to remain steady in 2023-24 at 2.9 million hectares. Downward pressure on local corn prices will limit the expansion of corn plantings, adding that it foresees a positive trend in soybean plantings this season to a record 1.2 million tonnes. In 2022-23, farmers planted soybeans on 1.1 million hectares, an upsurge of 24% from the previous year.
(Link: WorldGrain)
US FORECASTS RECORD HIGH CORN HARVEST, PRICES HIT THREE-YEAR LOW
USDA ) raised its estimate for the nation’s 2023-24 corn crop to 15.234 billion bushels in a monthly report, from 15.064 billion in October, sending futures prices to a three-year low. The USDA also increased its forecast for soybean production to 4.129 billion bushels from its October estimate of 4.104 billion. It estimated average yields at 174.9 bushels per acre for corn and 49.9 bushels per acre for soybeans. The U.S. corn and soybean harvests are almost complete. Chicago Board of Trade corn futures were down 6-1/4 cents at $4.69-3/4 a bushel. Soybean futures fell 15-1/2 cents to $13.50-1/4 a bushel.
Corn stocks are projected to swell to 2.156 billion bushels for 2023-24, up from USDA’s previous estimate for 2.111 billion. The government pegged global corn stocks at 314.99 million metric tons, up from 312.40 million. U.S. soybean ending stocks were estimated at 245 million bushels, compared to 220 million last month.
(Link: Reuters)
