Projections contained in the U.S. Department of Agriculture's World Agricultural Supply and Demand Estimates, if realized, would dampen the demand for grain transportation in marketing year (MY) 2022/23.
The good news from the May 12 report is that soybean production is forecast at a record 4.64 billion bushels.
The bad news is that, even when combined with wheat production that is estimated to exceed MY 2021/22, total production of grain (corn, soybeans, and wheat) is projected to decrease 2% from MY 2021/22 to MY 2022/23.
Domestic use and exports are projected to slip for corn and wheat, but to increase for soybeans.
Domestic use and exports of the three crops combined are predicted to decrease 2% and 1%, respectively, in MY 2022/23 from 2021/22.
Such declines, in turn, would lessen the need for grain transportation.