Your Pro Farmer newsletter (March 11, 2023) is now available

USDA’s March Supply & Demand Report featured limited changes to its balance sheets, though the adjustments that were made were notable. USDA slashed its 2022-23 Argentine corn export forecast by 7 million metric tons (276 million bu.), but it also cut U.S. corn exports by 75 million bu., signaling the extended period of high prices has caused demand destruction. Meanwhile, Argentina’s production estimates continue to decline, with some forecasters calling for the smallest soybean crop since 1999. La Niña has ended and El Niño could develop by summer. However, a strong negative Pacific Decadal Oscillation has intensified as La Niña weakened, which can lead to warm, dry conditions during summer in the central United States. On the trade policy front, the U.S. and Mexico requested formal consultations with Mexico over its policies limiting imports of GMO corn and other products. Fed Chair Jerome Powell had a more hawkish tone in comments to Congress last week, which sparked a sharp market reaction, including a strong rally in the U.S. dollar and an inversion of the yield curve. We cover all of these items and much more in this week’s newsletter, which you can download here.