NASHVILLE, TENN. (RFD NEWS) — Corn and soybean growers are waiting for the latest World Agricultural Supply and Demand Estimates report from the U.S. Department of Agriculture.
USDA will release its September WASDE report at noon Eastern, providing updated estimates for production, demand, exports and stocks for corn and soybeans.
Corn is getting the most attention, with analysts watching to see if USDA lowers its yield estimates after signs of weaker crops in parts of the Corn Belt.
The report comes as harvest gets underway and crop conditions continue to slip.
Arlan Suderman will join Market Day Report to break down how the markets are reacting to the report in real time.
The report also comes as analysts watch changes in the global corn market, including Brazil’s role as a major supplier.
Brian Irey with Crossroads Coop says China has invested heavily in Brazilian ethanol.
“China has invested a tremendous amount in Brazilian ethanol. Just from the perspective that if they make ethanol in China, they have to ship three vessels of corn to produce the equivalent of one vessel of ethanol. It’s much simpler for them to build the ethanol infrastructure in Brazil and only pay freight on one boat of ethanol freight to get it to China. And that’s their plan.”China has also been building crush capacity in Brazil for several years.
Irey says those moves could ultimately benefit American growers.
“I think that with Brazil out of the picture and Ukraine’s ability to export corn here for the foreseeable future somewhat limited, it’s going to be really, really, really good for the U.S. producer as time goes on here.”Irey says it could take several years for all of that infrastructure to get up and running.
He also says six-dollar corn could be a reality for U.S. producers in the near future.
Irey joined Market Day Report to discuss the changing global corn market and what it could mean for U.S. growers.
