ACC ALPINE GROUP

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 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 marketing year 2021/22, total production of grain (corn, soybeans, and wheat) is projected to decrease 2% from marketing year 2021/22 to marketing year 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 marketing year 2022/23 from 2021/22. 

Such declines, in turn, would lessen the need for grain transportation.