Trade Keeps Close Eye On South America Drought

Feb 11, 2022

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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Video: Fendt Testimonial | Fendt 726 Vario Gen7 | Peter Watson Jones Ltd.

What happens when a farm buys its first Fendt? For Peter Watson Jones Ltd, the Fendt 726 Vario Gen7 has exceeded expectations from day one. For Jack, Farm Manager at Peter Watson Jones Ltd in North Shropshire, UK, the Fendt 726 Vario Gen7 wasn't just another tractor purchase. It was the farm's first experience with the Fendt brand.

Operating across a 1,200-acre arable farm alongside a 250,000-head broiler enterprise, the business has evolved significantly over the last decade, moving to a straight arable system with fewer staff and machines. Since arriving on the farm, the Fendt 726 Vario has established itself as the main drilling and cultivations tractor, earning its place through performance, versatility and efficiency. Whether it's handling large-scale cultivations or working with a new 4.5m strip-till drill, the tractor continues to impress.

Jack highlights its excellent manoeuvrability, operator comfort and ability to deliver strong pulling power at low engine speeds. The result? Outstanding fuel efficiency without compromising performance. Reliability has also been a key factor, with dependable backup from the team at TR Machinery helping to keep the tractor working when it matters most.

?? Watch as Jack shares why the Fendt 726 Vario Gen7, the farm's first Fendt, has made such a strong impression and become an integral part of their operation.