The current forecast has South America looking dry for a little while.
Dry conditions aren?t a huge concern yet, but that can always change. Allendale commodity broker Greg McBride said that prolonged dry conditions could cause some crop stress in Brazil?s safrinha corn.
McBride provided a crop update for Argentina, where corn harvest is moving along.
McBride also provided a crop update for Brazil. He said they should be looking to finish up their soybean harvest within the next week or so.
Every time we hear about the crop conditions in South America, it seems like they just get worse than expected. In fact, we heard recently that the Buenos Aires Grain Exchange lowered the ratings for both the corn and soybean crops in Argentina. While the changes weren?t huge, it?s concerning to see them continue to move in a negative direction. McBride said they?ve somewhat stabilized in South America, but some continuous dry weather could spell trouble.
McBride also said that they?re going to be keeping an eye on the value of the Brazilian real, which is their currency down there, since the U.S. dollar is currently very strong and adding pressure to other currencies.
McBride added some advice for Iowa producers, especially those who are eyeing that $8 corn.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
