The South American Radar Rundown
South American farmers are feeling the weather woes and global effects have many on high alert.
The rundown: In Argentina, Mother Nature is being a little stingy with the agua. Growing regions are receiving up to 50% less of their normal rainfall amounts, and March is projected to be the driest in 30 years. And that has soy producers concerned about proper crop development as the beans are maturing.
But when it rains, it literally pours: While Argentine farmers are grasping at straws, Mother Nature has the hydrant wide open across Brazil. Farmers in the country’s northern and east-central growing regions are getting dumped on, putting the soybean harvest at 20% behind its normal pace.
The extra-sloppy Brazilian weather also has farmers concerned about the safrinha (second-crop) corn planting. Delayed planting due to the wet weather could create the perfect storm of a pollination schedule mixed with the dry season.
No bueno for production numbers.
What’s ahead: Tight global supplies. With South American supply issues on everyone’s radar and U.S. grain stocks at 6-7 year lows, markets are turning to the projected northern hemisphere’s planting season to gauge how 2021 will play out.