Drought may lift feedgrains

Jan 24, 2023

The U.S. Department of Agriculture continues to make downward adjustments to its estimates of South American corn production — a factor that should bode well for feed barley prices in Western Canada.

In a Jan. 12 bulletin, the USDA reduced its estimate for total Brazilian corn production in the 2022-23 marketing year by one million tonnes to 125.0 million tonnes. That’s down from the USDA’s December estimate of 126 milllion tonnes.

The USDA’s corn production estimate for Argentina has also been reduced five percent from last month’s estimate. It now expects 52 million tonnes, down from 54.7 million tonnes a month earlier.

Average corn yields in Brazil and Argentina are expected to be higher than last year, but prospects for this year’s harvest are being pared down as drought conditions in the two countries continue to affect overall yield potential.

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