A large portion of Brazil is preparing for a bit of a dry spell. While this did cause some initial concerns, it seems like the dry weather didn?t come at a particularly poor time. Allendale commodity broker Greg McBride said they?re still going to be in great shape, and the drier conditions might even help them finish planting their safrinha crop.
McBride also provided a harvest and planting progress update for Brazil based on what we know from last week?s numbers.
The monthly WASDE and CONAB reports will be coming out later this week. McBride said they?re looking for some stabilization in these reports.
Additionally, current concerns in Argentina have led to some labor strikes. Fuel shortages are already a big enough issue with Argentina?s dependence on trucks for transportation, but the poor state of their economy means they don?t have the funds necessary to bolster their fuel supply.
McBride also said that one of the biggest things to watch out for in the near future is the weather patterns.
The current marketplace is, at the very least, treacherous to navigate. McBride said that it’s important to remain cautious during times like these, especially when it comes to hedging.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
