South America has large impact on markets, exports

As farmers check crop markets each day, the latest news on weather and crops in South American can help drive prices either direction. Parts of both Argentina and Brazil have struggled with drought conditions at times during this growing season. But both countries have also seen beneficial rains provide some relief, although yield potential may have been lost already, making the crop picture there harder to project.

The USDA’s Foreign Agricultural Service has given declining estimates for Argentina’s corn and soybean production.

Jim Sutter, CEO of the U.S. Soybean Export Council, says it has been a tale of two countries, with Brazil getting meaningful rain relief while Argentina has seen soybean production estimates continue to drop.

“I think the crop in Brazil is looking like it’ll be a record,” he says. “Certainly a good uptick in the crop in Brazil. Argentina, this year their crop has really suffered from drought.”