Traders will closely monitor corn estimates for South America, noting the potential for a rally if significant adjustments are made.
Hot and dry conditions could impact yield, which makes up three-quarters of the country’s total corn production. Other countries rely on that crop for imports during later months when American corn is not ready to be harvested.
Last month’s WASDE report had Brazil’s total production at 123 million metric tons. However, CONAB, the country’s equivalent of USDA, believes it will land around 111 million metric tons.
Analysts say if numbers do come in lower, it could cause corn to rally.
