With the release of the USDA WASDE report this week, there was plenty of talk surrounding the weather in South America.
Dan Basse is President of AgResource Company in Chicago.
"It's one of the worst droughts we can find looking backwards in four decades. Southern Brazil, Argentina have been enduring drought going all the way back now to the middle of November. That drought looks to persist. The forecasts are dry for at least another couple of weeks," he said. "Crop numbers are declining and we would expect USDA and future reports to make those adjustments also. Ultimately, we think there may be another nine million metric tons fall in the Brazilian crop, maybe another three or four in Argentina and two in Paraguay."
Basse says that will add up to about another fourteen million metric tons and that will probably get us close to where we need to be with soybeans trading just below $16 a bushel in Chicago.
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