Argentina Crop Update
- The Buenos Aires Grains Exchange (BAGE) reported soybean planting surged 10% to 39% complete and is on pace with average.
- Bean area is projected at 17.2 million hectares, nearly unchanged from last year.
- Corn was 32% planted up just 1% from last week and is still behind 46% last year.
- The early corn condition is rated at 34% good to excellent which is down from 35% last week and 53% last year.
- BAGE estimated moisture conditions improved for more than 60% of planted areas over the last week with the pickup in rains.
FBN’s Take On What It Means: Recent rains have been helpful, but dryness concerns continue in Santa Fe and north central Cordoba. There is more rain in the nearby forecast before a drying trend is expected to develop again later in December. The risk of adverse weather should continue to support prices after any correction.
Australia Crop Report Update
- ABARES released its latest crop production update, showing wheat production at 31 million tonnes, up from 29 million issued earlier this year.
- Favorable rainfall was cited as the main reason production was up versus the previous forecast; last year, the crop was a small 15.2 million tonnes.
- Barley production is seen at 12 million tonnes, up from 11.2 million previously and 9 million last year.
- Canola production is seen at 3.7 million tonnes, up notably from 2.3 million cut in 2019/20.
- Lentil production also is higher at 616,000 tonnes versus 534,000 last year.
FBN’s Take On What It Means: Australia’s wheat production outlook could pressure some global FOB prices for certain classes of wheat. Increased canola production may help to limit further sharp gains in the world veg-oil markets.
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