Flooding in South America is likely to do a number on crop production, but that was not the reason given by the U.S. Dept. of Agriculture (USDA) for the 2 million metric ton cuts seen in the USDA‘s latest WASDE report for both Brazilian and Argentine corn.
USDA Chief Economist Seth Meyer explains the drop:
Seth Meyer, USDA Chief Economist
According to Friday’s report, the USDA predicts Brazil to harvest 122 million metric tons of corn and Argentina to produce 53 million metric tons.
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