Tidbits
Yesterday morning, the USDA announced the sale of 218,604 mts of old crop corn to unknown and 20,000 mts of old crop soybean oil to unknown.
Karen Braun, Global Ag Analyst and Reporter for Reuters News Service reported the following on Thursday:
"According to its own statistics agency, CONAB, Brazil’s corn supplies, as of a few weeks ago, hit the lowest level in at least 25 years.
But the USDA does not expect a scenario like that to unfold until early next year. So, which is it?
The USDA-versus-CONAB storyline is not new. Controversy erupted last year over the two agencies' highly varying estimates for Brazil’s soybean and corn harvests.
The explanation is straightforward. USDA and its Brazilian equivalent CONAB hold differences across the balance sheet, spanning both production and demand. There is no “right” answer.
But with available world corn supplies later this year projected to fall near three-decade lows when compared against demand, the trends in Brazil might be worth unpacking.