U.S. Department of Agriculture's (USDA) April WASDE report reflects the serious drought problems plaguing Argentina's soybean crop. USDA lowered the estimate for Argentina's soybean crop by seven million tons to 40 million due to reduced harvested area and yield.
Drought hit the region during the prime growing months, January through March.
Meanwhile, lower soybean production is partially offset by higher production in Brazil. USDA expects Brazil farmers will produce a record amount of soybeans of 115 million tons. That two million ton increase is based on higher projected yields from Mato Grosso, Brazil's top soybean growing state.
Domestically, U.S. ending stocks for corn came in at 2.1 billion bushels, up 55 million bushels from last month. The increase is based on USDA's expectation for reduced feed and residual use.
The 2017/18 U.S. soybean ending stocks are estimated at 550 million bushels, down 5 million from last month. USDA expects increased crush. Soybean exports were also unchanged.
The projected 2017/18 U.S. wheat ending stocks came in 30 million bushels higher at 1.06 billion bushels.