The United States Department of Agriculture (USDA) published its May World Agricultural Supply and Demand Estimates (WASDE) report this week, updating its current season balance sheets and its first estimates for next season. The markets were particularly keen to see how the USDA would assess corn production prospects for Brazil.

Late drilled crops are now suffering from an almost complete lack of rain, low soil moistures and rising temperatures. Despite the planting difficulties and obvious adverse weather, the USDA has previously failed to make changes to its crop estimate. However, this time it has made a notable cut of seven million tonnes, now reducing its wheat crop estimate to 102 million tonnes. 

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