Highlights
The percent of the nation’s corn crop in a drought declined 2% the past week to “just” 57%. Likewise, the beans in a drought declined 2% to “just” 51%. If that will make record high yields, something is wrong someplace.
The discussion between Putin and Turkey’s President Erdogan to revive Ukraine’s export corridor was short. Putin said sanctions must be lifted. End of discussion.
Rumor is India is working on a deal to buy 9 million mts of Russian wheat. India often has wheat to export. A few months ago, India’s government banned wheat exports. Next to China, India grows more wheat than any country.
Yesterday morning, the USDA announced the sale of 134,000 mts of new crop soybeans to China.
Datagro estimates Brazilian new crop corn production at 126.6 million mt, with planted area down 4% and soybean production at 163 million mt from 28+ million more acres than the US planted to beans this year.
Reuters estimates that the wheat carryover for the seven top wheat exporters will hit a 16 year low in 2023/24 and, if Russia is removed from the equation, wheat inventory will be the lowest since at least 1960. As we have reported a half dozen times the past year, 2023 will be the fourth consecutive year the world has produced less wheat than it consumed. How many more years can we do that with $6 to $8 wheat?