BUENOS AIRES, ARGENTINA (RFD-TV) — A shift in South America’s weather could shake up the crop outlook and help increase the competitiveness of U.S. grains in global trade markets.
Earlier in the week, the weather in Argentina and southern Brazil was trending drier, threatening soil moisture for winter wheat, corn, and first-season soybeans. Meanwhile, central Brazil was expected to see increased rain, easing dryness, but delaying soybean planting.
As of Thursday, heavy rains are wreaking havoc on Argentina’s farmland, and leaving nearly four million acres at risk. Central Buenos Aires is one of the world’s top grain-exporting regions. However, farmers are currently unable to access their fields, delaying soybean and corn plantings. Argentine farmers worry some land may remain idle for months, blaming years of under-investment in drainage and roads for worsening the impact.
Brian Hoops with Midwest Market Solutions told RFD-TV News that orders and cancellations will be worth watching in the weeks ahead. Hoops also said to keep an eye on weather conditions in Brazil, currently China’s top soybean supplier.
“We’re looking at China, not really buying a lot of soybeans—pretty good weather in South America – and yet, the market continues just to march higher,” Hoops explained. “We are in a tactical uptrend here for soybeans in the entire soy complex. That is giving us some strength from algorithmic-type trading on dips in the marketplace, to see if we continue to push higher. So we’re seeing a lot of strength in that, soybeans.”
Meteorologists link the pattern to a peaking La Niña, with conditions possibly normalizing early next year. Farmers will be watching closely, as this volatility could impact corn and soybean production across the continent.
