“What If” Brazilian Drought impact on Corn Price – 12/27/2021

Published by David Tedrow on

The USDA had assumed a substantial increase in both Brazilian corn production  and exports this season. Dry weather could significantly change the Brazilian corn outlook and tighten the US corn supply.  We have assumed a 10 million tonne  switch from Brazilian origin to US origin corn and plotted the result on our economic value study. Note that $8.00 corn would fit in line with the historical function under our What If assumption.

 

Categories: Grains

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