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South American weather a focus for markets
A commodities economist says prices aren’t expected to move higher unless there’s a weather scare in Brazil and Argentina.
Arlan Suderman with StoneX Group says that’s not expected in the near-term and U.S. producers are marketing harvested grain accordingly.
“Farmers are going to use on-farm storage mostly for corn while they try and move soybeans. There’s a fear if Brazil has a big crop and Argentina with a larger area has a decent crop and Chinese demand turns softer, we could be vulnerable to lower prices down the road.”
He says there’s been a delay in soybean planting in Brazil due to dry conditions and when there are planting delays, there’s a risk the second crop corn will be planted late.
“That pushes its pollination and grain-fill period into the dry season if the rains end at their normal time. We have produced big corn crops when they were planted late in years when the rainy season lasted longer than expected.”
But if the rainy season ends at its normal time, he says a shorter corn crop is expected for South America.
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Publish date : 2024-10-14 11:12:00
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