Ukraine War Export Issues May Offset South American Corn Boom

Agricultural economist Brian Basting of Advance Trading suggests that the ongoing war in Ukraine could provide some support for the corn market, despite a record harvest in South America. Brazil's second crop corn harvest is wrapping up, and while it's a record, domestic use is also high, which may limit exports.

Argentina, however, has a record crop and will likely export aggressively. But Basting notes that continued export issues in the Black Sea could offset some of South America's increased production on the global market.

The war in Ukraine is not only affecting corn exports but also boosting wheat prices, which may influence U.S. farmers' decision to plant winter wheat acres this fall and potentially cut into corn acres next year.