The USDA raised its South American corn and soybean forecasts in Thursday’s World Agricultural Supply and Demand Estimates. Brazil now expects 138 million metric tons of corn and 180 million tons of soybeans, while Argentina is slated for 61 million tons of corn and 50 million tons of soy. Both corn figures exceed Wall Street Journal analyst averages, and Argentine soy beats expectations by 1.4 million tons.

U.S. grain outlook stayed flat from the May report, with corn at 15.99 billion bushels and soybeans at 4.44 billion bushels. Wheat was trimmed to 1.54 billion bushels, roughly 20 million fewer due to weaker hard‑red winter yields. The unchanged U.S. numbers contrast sharply with the upward revisions abroad, underscoring the Midwest’s reliance on weather rather than foreign supply.

CME Group’s grain futures slipped after the release, with corn futures down about 1 percent, soybeans also off 1 percent and wheat easing 0.2 percent. The modest declines reflect traders pricing in stronger South American supply while keeping U.S. output assumptions steady. Investors will watch subsequent planting reports for any shift in the balance between domestic and export markets.

Analysts note the revised South American numbers could tighten global grain inventories, pressuring prices ahead of the September harvest season.