Update on South American soybean crops
click image to zoom The topsoil moisture chart is provided to us by our weather consulting firm, World Weather, Inc. This is their latest analysis with data through earlier this week. The map is focused on the Argentine crop regions. The heaviest concentration of soybean production is located where the map is shaded to show extremely wet conditions. That is the border region between Cordoba, Santa Fe, Entre Rios, and Buenos Aires provinces.
Weather forecast maps throughout this week have been encouraging the view that there will be some relief from the very wet conditions over the next week or so. But beyond that there are many question marks. It is possible that some break from the rains would allow for modest progress in areas about the periphery of the most severely wet regions. Many Argentine farmers just like their counterparts in the U.S. in May are also trying to plant corn, which is also delayed. An improving weather trend may encourage corn plantings first rather than soybeans. With extremely tight world soybean supplies, weather conditions in South America will continue to be the main factor affecting soybean prices.
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