Last week, we looked at how the American weather models were shaping up as we head into the winter. Our concerns are mostly with replenishing water in our soils. We aren?t only paying attention to the weather in the United States. In South American production areas, they are seeing their shares of the haves and the have-nots.
We again visit with Ag Meteorologist Ryan Martin. He talks about the situation in Brazil. They are seeing near-perfect weather conditions, which is putting them in a good position to harvest some possible record crops this year. That has the markets and U.S. producers paying close attention.
On the contrary, Argentina is not seeing rain again this year. While they aren?t the massive producer that Brazil is, they are one of the largest processors in the world. If they must look outside their borders to get soybeans; meal and soy oil will be in a precarious situation down there.
Like the United States, Argentina has a chance to see improvement if La Ni?a weakens. The question is will it, and when?
The situation in Brazil is the one that is going to be the focus for Americans this winter. If their crops and production are as good as anticipated, we will likely see the markets start to react with lower prices.
To that end, I will join a Brazilian agriculture tour this weekend, starting in Brasilia. For 12 days I will be sending reports back to Iowa about what I am seeing and hearing about many different facets of their agriculture industry as we travel around the country. Watch for my future reports from Brazil in Profit Matters, Ag Matters PM on YouTube, and our AgMatters daily newsletter.
