According to a recent USDA report, global corn and soybean production are expected to decline significantly during the current crop year.
The organization estimates that compared to the latest report, which was presented in October this year, the world’s primary corn reserves fell by 0.9 million tons to 303.33 million tons.
Some experts believe that declining reserves in countries such as the United States and South Africa have led to a shortage.
The report also points to the decline in production of this crop during the current crop season and the world will face a decline in production of more than 12.5 million tons.
Meanwhile, these experts have also reduced their forecasts for soybean production. Some commentators believe that this reduction will cause a sharp increase in the price of this product.
Estimates suggest that the world production of soybean will fall by more than 5.5 million tons to 362 million tons.
Meanwhile, countries such as Argentina and the United States will experience the largest decline in production, and production in countries such as Brazil will increase.
Finally, the Chinese appear to be reducing their soybean imports from the middle of the current crop year.