Brazil, the top global competitor to U.S. corn and soybeans, just wrapped up another huge harvest, but the next crop might have a less favorable fate. Dr. Michael Cordonnier, President of Soybean & Corn Advisor in Hinsdale, Illinois, describes a combination of unfavorable financial conditions for Brazilian farmers.
Cordonnier believes that a potential delay in soybean planting due to dry weather could reduce the planting window for the second corn crop. This could affect Brazil’s corn supply.
The El Niño weather pattern could be another problem to consider for Brazil’s next crops. Indeed, this could raise concerns about weather-related crop losses, especially since Brazilian farmers suffered immense losses during the 2015-2016 El Niño. However, this potential impact on crops might vary from region to region due to Brazil’s land area. Nonetheless, the market is very interested in what Brazil may do this coming growing season.
