As the future for U.S. grain demand looks uncertain, the success of the crops in South America could cause some heavy competition in the marketplace. Allendale commodity broker Teddy Tarvis said the weather in South America is still looking like it will be cooperative for a while.
Planting progress in both Brazil and Argentina is also still slightly ahead of schedule, and the rain will help the planted crops get off to a good start.
Once China finishes its soybean import obligation, demand for U.S. grains might end up in a shaky situation. Tarvis said a strong South American crop would create even more competition and is currently causing a significant amount of uncertainty in the U.S. marketplace.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
