• The USDA’s May World Agricultural Supply and Demand Estimates (WASDE) report estimates tight supplies of global cereal and feed grains for marketing year (MY) 2022/23.
• We focus on the USDA’s global corn and wheat supply and demand estimates which we believe are essential for formulating ideas about global trade flows, downstream pricing, and inflation expectations.
• The USDA’s data confirms that a Ukraine driven global corn and regional wheat supply shock will persist.
• Inside the data, we see a material corn supply gap developing in Africa and the Middle East which should exacerbate the region’s inflationary pressures.

Download the full article